Finance & Economy | News & Insights

Rs. 1.13-lakh-cr GST mop-up in February points to ‘stable recovery’.

Published: March 2, 2021
Author: Manali bhanushali

Better compliance, too, helped.

Indicating a firming of economic recovery and better compliance, the total Goods and Services Tax (GST) collections in February reached over Rs. 1.13-lakh crore. The collection in February was 7 per cent higher than in the corresponding month of the last fiscal year.

According to the Finance Ministry, collection of over Rs. 1.1-lakh crore for the third month in a row and over Rs. 1-lakh crore for five consecutive months is proof of economic recovery.

“During the month, revenue from import of goods was up 15 per cent and that from domestic transactions (including import of services) 5 per cent higher than the revenue from these sources during the same month last year,” a Finance Ministry statement said.

MS Mani, Senior Director at Deloitte India, said that in addition to the stabilisation of economic activity, the continuing trend of high GST collections for the past few months is on account of the data analytics approach adopted by the authorities thathas led to significant detection of evasion and incorrect ITC use.

“With the gradual opening up of the services sector, economic activity is expected to pick up leading to improved collections in the next month as well,” he said.

According to Aditi Nayar, Principal Economist with ICRA, a favourable base effect is likely to result in the CGST collections expanding by 18-23 per cent in March 2021. However, the settlement of IGST of Rs. 48,000 crore between the Centre and the States will adversely impact the net CGST-plus-IGST revenues of the Centre in February, resulting in a moderation in the growth of its gross and net tax revenues in that month, she said.

State-wise collections

Analysis of February data showed that all big States registered a growth. In Maharashtra, the collection increased 2 per cent to over Rs. 16,000 crore while Gujarat’s jumped 14 per cent to Rs. 8,200 crore. Karnataka registered a growth of 2 per cent with a mop-up of more than Rs. 7,500 crore, while Tamil Nadu saw an increase of 9 percent at over Rs. 7,000 crore.

Related Posts

Multiple Repayment Options, Low Interest Rates, and More with Bajaj Finserv Gold Loan