GST collection for April of Rs 1,41,384 crore sets new record

Economy


Goods and services tax (GST) collections hit a record monthly high of Rs 1.41 lakh crore in April, pointing to a recovering economy before the Covid pandemic exploded.

April GST collections, for transactions in the previous month, are 14% higher than the Rs 1.24 lakh crore collected in March, according to official data.

This is the seventh successive month collections have crossed Rs 1 lakh crore.

Loading...
2 may

The improvement came despite the second wave of Covid-19 affecting several parts of the country and was indicative of the resilience of Indian businesses, the finance ministry said in a statement on Saturday.

“These are clear indicators of sustained economic recovery during this period,” the ministry said.

Experts said the collections could decline going ahead as the pandemic surge has led to closures in many states.

“The all-time high collections which relate to supplies made in March 2021 could now give way to muted collections in the coming months due to the lower economic activities in April,” said MS Mani, senior director at Deloitte India.

The April revenue comprised central GST of Rs 27,837 crore, state GST of Rs 35,621 crore, integrated GST (IGST) of Rs 68,481 crore and compensation cess of Rs 9,445 crore.

After IGST settlements by the Centre, states received a total Rs 58,377 crore in April while the Centre collected Rs 57,022 crore.

Comparable data for April 2020 is not available because of the nationwide lockdown that was in place at the time.

Compliance measures
Measures to increase compliance and check evasion have also boosted collections.

Closer monitoring against fake billing, deep data analytics using information from multiple sources such as GST, income tax and customs IT systems and effective tax administration have contributed to the steady increase in tax revenue, the finance ministry said.

“The continuing focus on improving compliance and the steps taken to curb evasion appears to be significantly improving the GST collections,” Mani said.



Source link

Articles You May Like

General Motors (GM) earnings Q1 2021 crush expectations
Montana opts to end $300 unemployment boost. Other states may, too
India’s FY22 growth forecast of 11% firmly tilted to downside: Crisil
Jeff Bezos’ Blue Origin space tourism flight launches July 20
WHO approves Covid vaccine made by China’s Sinopharm for emergency use

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading...