Gross GST revenues of India recovered sharply to Rs 1,16,393 crore in July, after slipping below the Rs 1 lakh crore mark for the first time in eight months in June.
The Government called the collection a sign of speedy economic recovery from the second COVID-19 wave.
“With the easing of COVID restrictions, the GST number for July 2021 has again crossed Rs 1 lakh crore, indicating that the economy is recovering at a faster pace. Strong GST revenue is likely to continue in the coming months as well,” the Finance Ministry said in a statement on Sunday.
The July figures include returns worth Rs 4,937 crore, filed between July 1 and July 5, as relief was given to taxpayers on delayed filing of returns for June because of the second wave of the COVID-19 pandemic.
Goods and Service Tax (GST)
GST stands for Goods and Services Tax. GST is levied on the supply of certain goods and services in India. It is a tax that is applicable all over India.
As per the GST rules, IGST is to be shared between the Center and the states in the ratio of 50:50 and as per the recommendations of the 15th Finance Commission, the central government give 42 per cent more of its share to the states.
July collections increase 33%
July collections were 33 per cent higher than a year ago, GST on import of goods increased by 36 per cent and domestic transactions (including import of services) increased by 32 per cent.
GST Collection in 2021
States with highest growth rate
Most states reported positive growth in tax collections as compared to July 2020. Odisha and Jharkhand registered a growth of 54 per cent, followed by Haryana at 53 per cent and Maharashtra at 51 per cent, while Tamil Nadu and Gujarat recorded 36 per cent growth.
Kerala registered a 27 per cent increase in GST revenue, Uttar Pradesh, West Bengal and Rajasthan, registered a growth of 18 per cent, 15 per cent and 12 per cent, respectively.
The Ministry attributed June’s decline in GST revenues at Rs 92,849 crore, after posting above Rs 1 lakh crore mark for eight consecutive months, to the complete or partial lockdowns due to COVID in most States and UTs in May.
Break down of GST collection
Collection of July includes Central GST revenue of Rs 22,197 crore, State GST of Rs 28,541 crore and Integrated GST of Rs 47,865 crore, of which about Rs 28,000 crore was from import of goods. Compensation cess collection, used to reimburse states for adopting the GST regime, stood at Rs 7,790 crore including Rs 815 crore collected on import of goods.
“The Central Government has fixed Rs 28,087 crore from IGST to CGST and Rs 24,100 crore to SGST as regular settlement. The total revenue of the Centre and the States after regular settlement in July 2021 is Rs 50,284 crore for CGST and Rs 52,641 crore for SGST,” the Ministry said.