GST mop-up hits ₹1.17L-cr in September

NEW DELHI: GST revenue crossed ₹1.17 lakh crore in September with a 22.5% year-onyear jump, the fourth-highest collection since its launch on July 1, 2017, and second-highest in the current financial year, signalling a sustained recovery of business activities after the second wave of Covid-19 pandemic and increased compliance.

Indirect tax collections, a weathervane of economic health, have crossed ₹1 lakh crore for three consecutive months after plunging below the benchmark in June (₹92,849 crore) because of the bruising second wave of Covid-19 that ravaged the country in April and May. The June collection figure indicates the volume of business transactions that took place in May. In May this year, most of the states were under complete or partial lockdown due to the second wave. There was, however, no federal lockdown this year as there was last year.

“The average monthly gross GST collection for the second quarter of the current year has been ₹1.15 lakh crore, which is 5% higher than the average monthly collection of ₹1.10 lakh crore in the first quarter of the year. This clearly indicates that the economy is recovering at a fast pace,” the Union finance ministry said in a statement.

Anti-evasion activities, especially action against fake billers also contributed to the enhanced GST collections, it added. “It is expected that the positive trend in the revenues will continue, and the second half of the year will post higher revenues.”

India’s GDP grew at 20.4% in the first quarter of the year, largely on account of the base effect. RBI expects it to grow at 9.5% for the entire year. While most high-frequency indicators suggest a recovery in the economy, the jury is still out on how sustainable this is.

MS Mani, senior director at consultancy firm Deloitte India, said: “The GST collection figures indicate that growth of the economy is leading to stable collections, which would help in achieving the fiscal deficit target of 6.8% of GDP.”