GST kitty rebounds to ₹1.16L cr in July

The Goods and Services Tax (GST) collection surged to ₹1.16 lakh crore in July, a 33% year-on-year jump, signifying the easing impact of the second wave of the Covid-19 pandemic on the economy which saw the revenue plunge below ₹1 lakh crore in the previous month for the first time since October 2020.

The GST revenue in July this year, which indicates the actual volume of business transactions in June, is also about 14% up compared to ₹1.02 lakh crore collected in July 2019, pointing at rapid economic recovery after the second wave that raged in the months of April and May, according to official data.

The GST collections, after posting above ₹1 lakh crore for eight months in a row, dropped below ₹1 lakh crore in June 2021 as the collection in the month was predominantly related to business that took place in the month of May 2021, when most of the states and Union territories (UTS) were under complete or partial lockdown due to the pandemic, the finance ministry said.

NEW DELHI:

GST collection (in ͈ crore) 150000

120000

90000

60000

30000

0

Apr 2020

Mar 2020

Oct 2020

Sep 2020

April 2020-Sept 2020: Revenue drops for 7 months after 68-day lockdown is announced in late March

“With the easing out of Covid restrictions, GST collection for July 2021 has again crossed ₹1 lakh crore, which clearly indicates that the economy is recovering at a fast pace. The robust GST revenues are likely to continue in the coming months

June 2021: Revenue dips below ₹1L crore on 2nd wave impact

Jun 2021

July 2021: Another sign of recovery

too,” it said in a statement.

The International Monetary Fund (IMF) last week slashed India’s growth forecast for FY-22 to 9.5% from 12.5% projected in April, citing the severe second wave of the pandemic,