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Current Affairs

Surge in GST collections

Date: 08 November 2021 Tags: Miscellaneous

Issue

The Goods and Services Tax (GST) gross revenue collection clocked Rs 1,30,127 crore, rising by 23.7 per cent year-on-year.

 

Background

 Since the rollout of GST in July 2017, this is the second-highest revenue collection. This comes after months of regular high collections.

 

Details

  • The economic activity is picking up and it is being supplemented by several compliance measures taken by tax authorities to curb evasion.

  • Out of the 1,30,127 crore, Central GST is Rs 23,861 crore, State GST is Rs 30,421 crore, Integrated GST is Rs 67,361 crore and cess is Rs 8,484 crore.

  • Data also showed that revenues from import of goods were 39 per cent higher and the revenues from domestic were 19 per cent higher compared to same period last year.

 

Indication

  • GST collections have picked up with 24-per-cent year-on-year growth and a 36-per-cent growth compared to pre-pandemic period of 2019-20. 

  • There is a belief that revenues would have still been higher if sales of cars and other products had not been affected due to shortage of semiconductors.

 

Measures to increase compliance

  • Measures such as nil filing through SMS, enabling a Quarterly Return Monthly Payment (QRMP) system and auto-population of return have been initiated by tax authorities.

  • Other measures include blocking e-way bills non-filers, suspending registration for users not filing returns for six continuous months and blocking credit for return defaulters.

  • State wise data showed that Maharashtra witnessed growth of 23-per-cent in GST revenues in October, Gujarat 25 per cent, Tamil Nadu 11 percent, and Karnataka 18 per cent.

 

Way ahead

Experts say that festive demand, sustained vaccination and robust farm sector growth will boost industrial recovery in coming days.