GST collections for July record Rs 1.16 lakh crore

Gross goods and service tax (GST) revenue collected in July stood at Rs 1,16,393 crore showing a revived uptrend in business activity and economy during June as states eased restrictions.

The collections crossed the Rs 1 lakh-crore mark again after dipping from the level in June due to lockdowns or restrictions imposed by states amid the Covid second wave.

“With the easing out of Covid restrictions, GST collection for July 2021 has again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace,” the finance ministry said in a statement Sunday.

“The robust GST revenues are likely to continue in the coming months too,” it added.

The revenues for the month of July are 33% higher than the GST revenues in the same month last year.

During the month, revenues from import of goods were 36% higher and the revenues from domestic transaction, including import of services, are 32% higher than the revenues from these sources during the same month last year, the ministry added.

Experts said the sharp increase in the collections for June 21 indicates the resumption of economic activities in June and will raise expectations of better collections in the coming months.

”The improvement in GST collections both on domestic transactions and imports, accompanied by the fact that major producing states have shown significant increases, would indicate that the economic activities have resumed across the country,” said MS Mani, senior director at Deloitte India.

”If the country is able to resist the third wave, the GST collections should increase from here on,” said Rajat Bose, partner at Shardul Amarchand Mangaldas & Co.

Of the GST revenue collected in July, central GST is Rs 22,197 crore, state GST is Rs 28,541 crore, integrated GST is Rs 57,864 crore, including Rs 27,900 crore collected on import of goods, and cess is Rs 7,790 crore, including Rs 815 crore collected on import of goods.

The above figure includes GST collection received from GSTR-3B returns filed between July 1and 31 as well as integrated GST and cess collected from imports for the same period.

The GST collection for the returns filed between July 1-5, of Rs 4,937 crore had also been included in the GST collection in the press note for the month of June 2021 since taxpayers were given various relief measures in the form of waiver or reduction in interest on delayed return filing for 15 days for the return filing month June for the taxpayers with the aggregate turnover upto Rs 5 crore in the wake of Covid pandemic second wave.

The government has settled Rs 28,087 crore to central GST and Rs 24,100 crore to state GST from integrated GST as regular settlement. The total revenue of Centre and the States after regular settlement in the month of July 2021 is Rs 50,284 crore for central GST and Rs 52,641 crore for the state GST.