GST collections surge to ₹1.30 lakh crore in October

Revenues for the month of October 2021 are 24% higher than the GST revenues in the same month last year.

The GST revenues for October have been the second-highest ever since the introduction of GST, second only to the highest recorded at Rs 1.41 Lakh in April this year,  suggesting economic revival in the second half of the fiscal year 2021-22.

Out of the total gross revenue Rs 1,30,127 Cr collected in October, Central GST is Rs 23,861 Cr, State GST is Rs 30,421 Cr and Integrated GST is Rs 67,361 Cr and Cess collected at Rs 8,484 crore. The revenues for October 2021 are 24% higher than the GST revenues in the same month last year and 36% over the level of 2019-20.

“This is very much in line with the trend in economic recovery. This is evident from the trend in the e- way bills generated every month since the second wave,”  the Finance Ministry, said in a statement. It further stated that revenues would have been higher if sales of cars and other products had not been affected on account of disruption in the supply of semiconductors. Efforts of Central and State governments tax administration and increased compliance of taxpayers boosted the revenues.

“The impressive GST collections have resulted from a combination of sustained economic growth and continuing policy initiatives to improve compliance and discourage evasion,” said MS Mani, Senior Director, Deloitte India.

Adding further he went on to say If the robust GST collections seen in the current fiscal continue on the back of sustained growth of the economy, it is likely to exceed the year-end targets providing fiscal space to absorb the increased government’s expenditure.

 

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