eighth month in row GST mop-up tops Rs 1 lakh cr; lockdown influence muted

Indicating a lower-than-expected influence of localised lockdowns within the second wave of the Covid-19 pandemic, gross GST (Goods and Services Tax) collections in May (for gross sales in April) topped Rs 1 lakh crore for the eighth month in a row.
At Rs 1.02 lakh crore, it’s decrease than April’s report collections of Rs 1,41,314 crore, however nonetheless excessive regardless of most states imposing strict restrictions to interrupt the chain of transmission of the an infection.
“Collections above Rs 1 lakh crore pertaining to the transactions in the month of April indicate that the economic impact of the lockdowns has been much lower than expected. A close watch is required on the next month’s collections to determine the extent of the impact on GST collections FY22,” mentioned M S Mani, Senior Director, Deloitte India.
In the corresponding month final 12 months, i.e. May 2020, the GST collections had stood at Rs 62,009 crore. Last 12 months, after the nationwide lockdown was introduced in March, GST collections had dipped to a report low of Rs 32,172 crore in April (for gross sales in March).

Subsequently, it took six months for the GST collections to recuperate and cross the Rs 1 lakh crore mark in October at Rs 1.05 lakh crore.
In a press assertion Saturday, the Ministry of Finance mentioned, “This would be the eighth month in a row that GST revenues have crossed ? 1 lakh crore mark. This is despite the fact that most of the States have been under strict lockdown due to the pandemic.”

The numbers for May are anticipated to enhance additional because the submitting deadline for smaller taxpayers is until July first week.
“…while the taxpayers with turnover above Rs 5 crore had to file their returns by June 4, which they would have otherwise filed by May 20, smaller taxpayers with turnover less than Rs 5 crore still have time till first week of July to file the returns without any late fee and interest and the revenue from these taxpayers is deferred till then. The actual revenues for the month of May 2021, thus would be higher and would be known when all the extended dates expire,” the Ministry of Finance assertion mentioned.
The absence of a stringent nationwide lockdown has been a silver lining, on condition that it has ensured industrial financial exercise continued even when at a lowered degree. The Indian Express had reported earlier how key financial information factors like port container visitors, railway freight in April and May this 12 months prompt a much less extreme lack of exercise than final 12 months. Experts had mentioned the June collections (for gross sales in May) is likely to be impacted as e-way payments had recorded a sharper decline in May.
The gross GST income collected in May 2021 stood at Rs 1,02,709 crore, of which central GST is Rs 17,592 crore, state GST is Rs 22,653 crore, built-in GST is Rs 53,199 crore (together with Rs 26,002 crore collected on import of products) and cess is Rs 9,265 crore (together with Rs 868 crore collected on import of products).