After topping the Rs 1-lakh-crore mark for eight months, gross Goods and Services Tax (GST) collections got here in at a 10-month low of Rs 92,849 crore in June (for gross sales in May), knowledge launched by the Finance Ministry on Tuesday confirmed. This indicated the influence of localised lockdowns by varied states in view of the second wave of the Covid-19 pandemic.
The June collections have, nevertheless, fared higher than expectations exhibiting the muted influence of second wave of the pandemic on GST revenues at the same time as e-way invoice era had proven a pointy dip to one-year low ranges in May.
GST collections in June are 2 per cent increased than Rs 90,917 crore collected in June final 12 months.
E-way payments, that are obligatory for inter-state transportation of products valued over Rs 50,000, have picked up since May. This is prone to end in improved GST collections within the coming months, which can assist assist authorities expenditure. E-way payments generated throughout June 2021 elevated to five.5 crore from 3.99 crore in May. About 5.88 crore e-way payments have been generated in April.
“During May 2021, most of the states/UTs were under either complete or partial lockdown due to COVID. The e-way bill data for the month of May 2021 shows that during the month, 3.99 crore e-way bills were generated as compared to 5.88 crore in the month of April 2021, down by more than 30 per cent. However, with reduction in caseload and easing of lockdowns, the e-way bills generated during June 2021 is 5.5 crore which indicates recovery of trade and business,” the Finance Ministry mentioned in a press release.
The gross GST income collected within the month of June 2021 is Rs 92,849 crore of which central GST is Rs 16,424 crore, state GST is Rs 20,397, Integrated GST is Rs 49,079 crore (together with Rs 25,762 crore collected on import of products) and cess is Rs 6,949 crore (together with Rs 809 crore collected on import of products), the ministry mentioned.
The GST collections throughout April-June, the primary quarter of FY2022, are almost twice as excessive as Q1 FY2021, reflecting the narrower influence of the state-wise restrictions in the course of the second wave of Covid-19 pandemic as in opposition to the nationwide lockdown final 12 months. “Despite declining to a 10-month low, the June 2021 GST collections provided a positive surprise…the GST collections in Q1 FY2022 are higher than the pre-Covid level of Q1 FY2020. This will buffer the revenue situation of the Centre and the states, which should support a ramping up of expenditure going ahead,” Aditi Nayar, Chief Economist, ICRA Limited mentioned.
Deloitte India Senior Director M S Mani mentioned whereas the collections are decrease than Rs 1 lakh crore which had turn into the norm for the previous few months, contemplating the truth that it pertains to transactions in May 2021 which was badly impacted by the pandemic, it could be thought of as a “very satisfactory collection.” “These numbers also reflect the economic resilience shown during the recent pandemic phase,” he mentioned.
