GST revenue collection drops below Rs 1 lakh crore in June after 8 months

Mangalore Today News Network

New Delhi, Jul 06, 2021: Goods and Services Tax (GST) collections fell below Rs 1 lakh crore for the first time in eight months in June, as per government data released on Tuesday. The gross GST revenue collected in the month of June is Rs 92,849 crore.

 

Of this, CGST stands at Rs 16,424 crore, SGST at Rs 20,397 crore, IGST at Rs 49,079 crore including Rs 25,762 crore collected on goods imports. The total cess collected was Rs 6,949 crore including Rs 809 crore collected on goods imports.

“The above figure includes GST collection from domestic transactions between June 5 to July 5, 2021, since 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 June 21 for the taxpayers with the aggregate turnover up to Rs. 5 crore in the wake of covid pandemic second wave,” said the government in a press release.

The government also indicated that it settled Rs 19,286 crore to CGST and Rs 16,939 crore to SGST from IGST as regular settlement.

GST COLLECTION FALLS BELOW RS 1 LAKH CRORE

It is the second straight month when GST collections have dropped, and the first time in eight months when revenue has fallen below Rs 1 lakh crore.

While GST revenue collection moderated to Rs 1.02 lakh crore in May, it fell below Rs 1 lakh crore in June due to the impact of Covid restrictions. However, the revenue generated in June is still 2 per cent higher than the GST collection in the corresponding month a year ago.

“GST collection after posting above Rs 1 lakh crore mark for eight months in a row, the collection in June 2021 dropped below Rs 1 lakh crore,” said the government.

Highlighting that the GST collection for June 2021 is related to business transactions made during May 2021, the government said, “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%.”

“However, with a 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,” it added.

With eased relaxations following improvement in the overall Covid-19 situation in the country, the government expects GST revenues to rise from July 2021 onwards.

Courtesy:India Today