GST collection in April hits record ₹1.41 lakh crore
THE COLLECTION IS OVER 14% HIGHER THAN THE PREVIOUS RECORD OF ₹1,23,902 CRORE IN MARCH 2021
NEW DELHI: The GST collection in April this year was an all-time high at ₹1,41,384 crore as compared to an all-time low revenue of ₹32,172 crore in April 2020, which was mainly due to a nationwide lockdown that hit the economy hard, according to official data. The collection in April this year is over 14% higher than the previous record of ₹1,23,902 crore in March 2021. The GST collections maintained the ₹1 lakh crore benchmark trend for the seventh consecutive month.
“Despite the second wave of Covid-19 pandemic affecting several parts of the country, Indian businesses have once again shown remarkable resilience by not only complying with the return filing requirements but also paying their GST dues in a timely manner during the month,” the Union finance ministry said in a statement.
The steady growth in GST revenues for the last seven months indicates a sustained economic recovery during this period, the statement said. After remaining in a contraction mode for six straight months since March 2020 because of the Covid-19 pandemic and a nationwide lockdown, GST collections entered an annualised positive growth path since September last year. A 68-day nationwide lockdown from March 25 last year had a devastating impact on the economy and consequently, the GST collections.
It led to a 24.4% contraction of the economy in the first quarter of 2020-21, and a 7.3% contraction in the second quarter, before it expanded by 0.4% in the three months ended December 31. Overall, the economy is expected to contract by 8% in 2020-21. Although the Reserve Bank of India (RBI) on April 7 estimated that the economy would grow at 10.5% in 2021-22 with a 26.2% growth in the first quarter of the current financial year, experts have doubts. “Much would depend on the economic impact of Covid’s second wave currently sweeping the Indian economy. At least the projected growth at 26.2% in 1QFY22 by the RBI would be significantly adversely impacted,” said EY India chief policy adviser DK Srivastava.