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Current Affairs

GST collection past Rs 1.3 lakh crore mark

Date: 03 March 2022 Tags: Miscellaneous

Issue

The collections of Goods & Service Tax (GST) for the month of February have crossed Rs 1.3 lakh crore mark.

 

Background

It is the fifth consecutive month that collections have gone beyond Rs 1.3 lakh crore.

 

Details

  • The collections have been rising due to slew of anti-evasion measures and a pickup in economic activity post the pandemic.

  • The number are significant because February witnesses lower number than January owing to less days.

  • In addition, this February many cities and states witnessed partial lockdowns, weekend and night curfews, and various restrictions.

  • Since introduction, it is for the first time that cess collection has crossed Rs 10,000 crore mark, marking key recovery in sectors such as automobiles.

 

State-wise changes

GST collections in Tamil Nadu increased by 5 per cent year-on-year in February, while it grew by 21%, 8% and 21% in Maharashtra, Gujarat and Karnataka respectively.

                                                               

Break-down

  • CGST (The tax levied on intra-state supplies of both goods and services by the central government) -- Rs 24,435 crore.

  • SGST (The tax levied on intra-state supplies of both goods and services by the states)—Rs 30,779 crore.

  • IGST (Tax levied on all inter-state supplies of goods and services) - Rs 67,471 crore.

  • The total revenue of the Centre and the states in February after settlement is Rs 50,782 crore for CGST and Rs 52,688 crore for SGST.

 

Future expectations

  • It is expected that revenues may cross the revised targets set for FY22 in the Budget if collections grow at the same rate.

  • This also shows that GST regime has now stabilized and would more or less remain constant in future.