In September, GST Collections Climb To Rs. 95,480 Crore, Highest Since Lockdown

The government's Goods and Services Tax (GST) collection peaked at Rs 95,480 crore in September, signaling signs of withdrawal of demand due to economic revival and removal of restrictions related to COVID-19. Which marked the highest level of GST collection in a month since the start of lockdown to prevent the spread of GST. The latest reading was 4 percent higher than the same month in the previous year, and nearly tripled mop-ups in April 2020.

The gross GST revenue collected in September 2020 was Rs 95,480 crore, the Finance Ministry in a statement. This included collection of Rs 17,741 crore under central GST, Rs 23,131 crore under state GST and Rs 47,484 crore under integrated GST.

According to official figures, the September tally included collection of Rs 22,442 crore on import of goods, and a cess of Rs 7,124 crore (including Rs 788 crore on import of goods).

The GST collection in August was 86,449 crores, 87,422 crores in July, 90,917 crores in June, 62,151 crores in May and 17 32,172 crores in April.

The government implemented a nationwide lockout from March 25 to curb the spread of COVID-19 infection and began easing restrictions in late May.

Ms Mani, senior director, Deloitte India, said the slight increase in GST collections (year-over-year) indicates that the economic recovery process is underway, with collections in some major big states also increasing.

He added, "If the current trends of GST collections continue, we should expect significant growth in the coming months based on the unlocked steps and festive season in various states."

Looking at similar views, EY tax partner Abhishek Jain said that the collection has shown good growth with the pace of operations and international trade aggregation of a significant part of the economy. "Increased revenue indicates a return to normalcy in business operations and provides a general optimistic view," he said.