Economy

GST collection crossed ₹1.30 lakh cr in November, second highest ever

Our Bureau | | | Updated on: Dec 01, 2021
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GST revenues in line with economic recovery, says Finance Ministry

Finance Ministry on Wednesday reported gross GST revenue collection in the month of November exceeding over ₹1.31 lakh crore. This is the second successive month of over ₹1.30 lakh crore collection and it shows economic recovery.

The GST revenues for the month of November are 25 per cent higher than the same month last year and 27 per cent over 2019-20. During the month, revenues from import of goods were 43 per cent higher and the revenues from domestic transaction (including import of services) are 20 per cent higher than the revenues from these sources during the same month last year.

GST collections indicate economic revival

 

 

 

Second highest

The GST revenues for November has been the second highest ever since the introduction of GST, second only to that in April 2021, which related to year-end revenues and higher than last month’s collection, which also included the impact of returns required to be filed quarterly. “This is very much in line with the trend in economic recovery,” a statement issued by the Finance Ministry said.

MS Mani, Partner, Deloitte India said that the GST collection figures tie up with the economic growth figures reported recently and indicate that the collections have now stabilised at a level which will enable surpassing the GST revenue targets for FY22. There has been a significant increase in the GST surveillance activities in recent times based on the data available with the GSTN, these would have also contributed to the increased collections, over and above the economic growth, which is the key driver of GST collections

“The increase in collections across major States ranging from 18-30 per cent plus points to an economic revival across States, accompanied by an increase in collections from import of goods,” Mani said.

October GST collections soar to ₹1.30-lakh crore

‘Improved compliance’

Vivek Jalan, Partner with Tax Connect Advisory Services attributed the spurt in GST collection to DGARM, which is the Data Analytics wing of the GST Council. Further changes in the GST machinery provisions such as blocking of GSTR-1 and waybills when even one GST return is not filed within time, suspending/cancellation of GST Number when there is a mismatch between GST Returns, blocking of Input Tax Credit of taxpayers where there is a ‘reason to believe’ that some suspicious activity is taking place, have ensured that compliance under GST by the taxpayers have improved and with that the GST collection has also received a push.

Increase in GST rates of textiles, Solar Panels, footwear, job work in Alcohol Industry, packaging materials, including various circulars on supplies like mining, ice-creams clarifying that higher GST rates are applicable, have paved the way for consistently increased GST Collections going forward too.” The above, coupled with the GST Department’s inspections, summons, audits and assessments across the country seem to be a clear indication to Trade and Industry that robust compliance is the way ahead under GST,” he said.

 

Published on December 01, 2021

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