Rs 1 Lakh GST Collected For 8th Month In Row, Despite Lockdowns! How This Happened?
According to the Finance Ministry, the gross GST revenue collected in the month of May 2021 has crossed one lakh crore mark.
GST Collection Crosses 1 Lakh Crore Mark
With CGST is Rs 17,592 crore, SGST is Rs 22,653, IGST is Rs 53,199 crore (including Rs 26,002 crore collected on import of goods) and Cess is Rs 9,265 crore (including Rs 868 crore collected on import of goods), the gross GST revenue collection in the month of May 2021 is Rs 1,02,709 crore.
In the light of pandemic, the taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month May’21 and hence this figure includes GST collection from domestic transactions till 4th of June.
As regular settlement, during this month the government has settled Rs 15,014 crore to CGST and Rs 11,653 crore to SGST from IGST
MS Mani, Executive Director, Deloitte India said, “Collections above Rs 1 lakh crore related to transactions made on April 21 show that the economic impact of lockdowns has been significantly lower than expected. in GST FY22. ”
As compared to the GST revenues in the same month last year, the revenue is 65% higher for the month of May 2021.
During the month, revenues from imports were up 56% and revenues from domestic sales (including imported services) were 69% higher than the revenues generated by these sources in the same month last year.
This month would mark as the eight one in a row where GST revenues have crossed Rs 1 lakh crore mark. Notably, this happens when most of the States have been under strict lockdown due to the pandemic.
GST Collection Could Further Rise
These numbers come as a pleasant surprise as most of the businesses were not functioning in the month of April due to the lockdown and the collection for the month of May 2021 is higher than expected said Rajat Bose, Partner, Shardul Amarchand Mangaldas & Co. Also he added that considering the fact that many small businesses are yet to file their returns considering the Covid related relaxations extended by the government for such businesses, these numbers shall rise.
Small taxpayers with turnover less than Rs 5 crore have time till first week of July to file the returns without any late fee and interest. Hence, the collection could be higher and would be known when all the extended dates expire.