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GST Collection Back on Track: Mop-Up at Rs. 1.16 Lakh Crores in July

Gross goods and Service tax (GST) collections topped Rs. 1 lakh crores in July after missing the mark the previous month, showing resumed uptrend in business activity and the economy as most states eased restrictions imposed during the second wave of the pandemic.

GST revenue collected totaled Rs. 1,16,393 crores the past month, the finance ministry said on Sunday, compared with Rs. 92,849 crores in June. From a year earlier, the proceed were 33% higher.

The July coactions indicate that the economy is recovering at a fast pace, the ministry said, adding: “The robust GST revenues are likely to continue in the coming months too.”

Experts also signaled stronger revenue numbers in August, with indicators such as e-way bills –required for the transportation of goods over Rs. 50,000 in value-recording an increase in July versus June. As of July 25, more than 49.5 million e-way bills had been generated, compared on revenue collections with a delay.

“In our view, this is further evidence that the graduated unlocking in June 2021 has triggered an incomplete recovery, which is expected to strengthen in July 2021, further boosting the August 2021 GST collections, “said Aditi Nayar, chief economist at rating firm ICRA.

In July revenues from import of goods were 36% higher from a year earlier, the ministry said. Collection from domestic transactions, including import of services, rose 32%.

“The improvement in GST collections, accompanied by the fact that major producing states have shown significant increases, would indicate that the economic activities have resumed across the country,” said MS Mani, a senior director at Deloitte India. S-ET

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