Signalling accelerating financial exercise, GST assortment topped the Rs 1-lakh-crore mark for the second straight month in August at Rs 1.12 lakh crore.
The tax collections in August on items bought and providers rendered was 30 per cent larger than Rs 86,449 crore collected in August 2020, and 14 per cent larger than Rs 98,202 crore collected in August 2019.
Sequentially, nonetheless, there was a 3.76 per cent dip in August 2021 assortment vis-a-vis Rs 1.16 lakh crore mopped up in July 2021.
“The gross GST revenue collected in the month of August 2021 is Rs 1,12,020 crore of which Central GST is Rs 20,522 crore, State GST is Rs 26,605 crore, Integrated GST is Rs 56,247 crore (including Rs 26,884 crore collected on import of goods) and Cess is Rs 8,646 crore (including Rs 646 crore collected on import of goods),” the finance ministry mentioned in a press release.
During August this 12 months, the revenues from home transactions (together with import of providers) had been 27 per cent larger than the revenues from these sources throughout the identical month final 12 months.
The GST assortment, after posting above the Rs 1-lakh-crore mark for 9 months in a row, dropped beneath Rs 1 lakh crore in June 2021, after the second wave of COVID precipitated a blip.
“With the easing out of COVID restrictions, GST collection for July and August 2021 have again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace. Coupled with economic growth, anti-evasion activities, especially action against fake billers have also been contributing to the enhanced GST collections. The robust GST revenues are likely to continue in the coming months too,” the finance ministry mentioned.
ICRA Chief Economist Aditi Nayar, nonetheless, cautioned over the sequential dip in assortment and moderation within the August manufacturing PMI. The PMI index stood at 52.3 per cent in August, down from 55.3 per cent in July.
“The sequential dip in the GST collections, lower-than-expected core sector growth, and moderation in the August manufacturing PMI suggest that some caution is warranted regarding the strength of the recovery that is underway in the ongoing quarter.
“We count on GDP development within the ongoing (September) quarter to vary between 7.8-8.8 per cent, with absolutely the degree of GDP to proceed to path the pre-pandemic degree because the providers sector struggles to meet up with the remainder of the financial system,” Nayar said.
India”s economy grew by a record 20.1 per cent in April-June quarter, helped by a weak base of last year and sharp rebound in manufacturing and services sector.
Singhania GST Consultancy & Co Partner Aditya Singhania said the collection during August 2021, majorly relates to supplies that took place in July 2021, and it seems to maintain the revenue consistency in comparison to the collection of July 2021, which clearly indicates the economy is thriving with the steady pace.
“With the brand new milestones India is attaining in getting individuals vaccinated, easing out of COVID restrictions, extension of amnesty scheme for waiver in late charges as a consequence of non-filing of GSTR 3B from July, 2017 to April, 2021, September being the final month to rectify the errors/omission for FY 2020-21, upcoming due dates for submitting of annual return/self-certified reconciliation assertion for FY 2020-21, sequential spurt in e-waybill era, and so on. we may even see acceleration in income from GST in coming months,” he said.
In the current fiscal, GST mop up touched a record high of over Rs 1.41 lakh crore in April, but fell to over Rs 1.02 lakh crore in May after the outbreak of second wave. In June, collection slipped below the psychological Rs 1 trillion mark to Rs 92,849 crore followed by a sharp rebound in July to Rs 1.16 lakh crore. In August it stood at Rs 1.12 lakh crore.
EY Tax Partner Abhishek Jain said the collections are for the supplies made in the month of July, when lockdown restrictions were relaxed for most parts of the country. “With growing fee of vaccination and enterprise provides choosing up, the uptrend is predicted to proceed in coming months,” Jain added.
Shardul Amarchand Mangaldas & Co Partner Rajat Bose said what is heartening to see is that manufacturing states such as Maharashtra, Karnataka and Tamil Nadu have shown an increase of over 30 per cent in GST collection, as compared to last year, which is a sure-shot sign of economic recovery.
Deloitte India Senior Director M S Mani said “many of the key manufacturing states have proven a rise of 25-35 per cent in collections in comparison with the identical interval final 12 months, indicating that the financial restoration could also be sooner within the present 12 months.”