Economy

Indirect tax revenue up 12% in FY21, exceeds revised estimate

Our Bureau. New Delhi | Updated on April 13, 2021

At ₹10.71-cr, mop up even crossed FY20’s 9.54-lakh cr

Indirect tax collection during FY21 exceeded not just the revised estimate, but the actual collection in FY20 as well, the Finance Ministry said on Tuesday.

“Provisional net indirect tax collections (GST and non-GST) for FY21 show growth of more than 12 per cent compared to actual revenue receipts in FY20. Net indirect tax collections represent 108.2 per cent of the revised estimates of ₹9.89-lakh crore of indirect taxes for FY21,” a statement issued by the Ministry said.

Revenue collection

The provisional figures showed that net revenue collections are at ₹10.71-lakh crore compared to 9.54-lakh crore for FY20. As regards customs, net tax collections stood at ₹1.32-lakh crore during the period under consideration against ₹1.09-lakh crore during FY20, a growth of around 21 per cent.

Net tax collections on account of central excise and service tax (arrears) rose to ₹3.91-lakh crore from ₹2.45 lakh crore, thereby registering a growth of more than 59 per cent. Though net tax collections on account of Centre’s GST slipped to ₹5.48-lakh from FY20’s actual collection of ₹5.99-lakh crore, it is still higher than the revised estimate of ₹5.15-lakh crore.

The GST collections were severely affected in the first half of the financial year on account of Covid. However, in the second half, the collections registered good growth and exceeded ₹1-lakh crore in each of the last six months. March saw an all-time high of GST collection at ₹1.24-lakh crore after good figures in January and February. Several measures taken by the Centre helped improve GST compliance, the statement said.

‘Remarkable feat’

Saket Patawari, Executive Director (Indirect Tax) with Nexdigm said considering the economic and financial impact of the pandemic in the first half of last financial year, a 12 per cent growth in the net indirect tax collections is a remarkable feat.

“While there has been an overall dip in annual GST collection in FY21, the overall collection has risen. This is due to 59 per cent growth in net tax collections on account of central excise and service tax (arrears) compared to FY20. This is largely on account of the Sabka Vishwas (Legacy Dispute Resolution) Scheme which allowed businesses to unload the baggage of legacy disputes and make a new beginning by focussing on GST. In addition to it there has been a rise in customs duty collection contributing to increase in indirect tax collection for the year,” he said.

Published on April 13, 2021

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