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GST Collection Crosses Rs 1 Lakh Crore Mark In August, Signals Economic Recovery

GST collected in July grew 33% year-on-year to over Rs 1.16 lakh crore. Collection in the same month a year ago was Rs 87,422 crore.

GST Collection Crosses Rs 1 Lakh Crore Mark In August, Signals Economic Recovery
Representational Image | File Photo
GST Collection Crosses Rs 1 Lakh Crore Mark In August, Signals Economic Recovery
outlookindia.com
2021-09-01T16:09:48+05:30

The government collected Rs 1.12 lakh crore in gross Goods and Services Tax (GST) for the month of August. This includes Central GST (CGST) of Rs 20,522 crore, State GST (SGST) of Rs 26,605 crore, Integrated GST (IGST) worth Rs 56,247 crore. IGST collected included Rs 26,884 crore collected on import of goods. Cess worth Rs 8,646 crore included Rs 46 crore collected on import of goods.

GST collected in July grew 33% year-on-year to over Rs 1.16 lakh crore. Collection in the same month a year ago was Rs 87,422 crore.

“The dip in the GST collections to Rs 1.12 lakh crore in August 2021 from Rs 1.16 lakh crore in July 2021 has belied the healthy improvement in the GST e-way bills to a daily average of 2.1 million in July 2021 from 1.8 million in June 2021, which was reflective of the lifting of restrictions especially across the Southern states,” Aditi Nayar, chief economist ICRA, said.

According to the government data released on September 1, revenue collected in August 2021 was 30 per cent higher than the GST revenue collected in the same month last year. Revenue collected from domestic transaction in August (including import of services) was up 27% in the same month a year ago. Compared to August 2019 levels, this was a growth of 14%, the government release said.

The government has settled Rs 23,043 crore to CGST and Rs 19,139 crore to SGST from IGST as regular settlement. Additionally, the central government also settled Rs 24,000 crore as IGST ad-hoc in the ratio of 50:50 between Centre and states/UTs. The total revenue of Centre and the states after regular and ad-hoc settlements came in at Rs 55,565 crore for CGST and Rs 57,744 crore for the SGST.

“The GST collections remain healthy at well above Rs. 1.0 lakh crore, the YoY growth is as high as 30%, and the ad hoc settlement  of unapportioned IGST will also help to ease the cash flows of the Centre and the states,” Nayar said.

After hitting the Rs 1 lakh crore-mark for nine months in a row, GST collections dropped below Rs 1 lakh crore in June 2021 due to the second wave of Covid. As the Covid restrictions were gradually eased, GST collection for July and August 2021 crossed Rs 1 lakh crore again, indicating a pickup in economic activities. According to the statement, GST revenue collection is expected to remain robust in the coming months.

“The sequential dip in the GST collections, lower-than-expected core sector growth, and moderation in the August manufacturing PMI suggest that some caution is warranted regarding the strength of the recovery that is underway in the ongoing quarter,” Nayar said.

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