GST Collection At All-Time High Since Its Implementation,almost touches Rs.1.20 lakh crore in January 2021

 On the eve of Union Budget 2021, the GST revenue collected for the month of January 2021 has touched nearly Rs 1.20 lakh crore. The tax collection is higher than the December 2020 record, which witnessed an unexpected rise of 11.6 per cent. This is the highest GST revenue the government has collected since the rollout of the Goods and Services Tax regime.

"The GST revenues during January 2021 are the highest since introduction of GST and has almost touched the Rs. 1.20 lakh crore mark, exceeding the last month's record collection of Rs. 1.15 lakh crore," the finance ministry said in a statement on Sunday

✅GST Revenue collection for January 2021 almost touches ₹1.20 lakh crore
✅Revenues for month of January 2021 are 8% higher than GST revenues in same month last year
✅GST revenues during January 2021 are the highest since introduction of GST
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— Ministry of Finance (@FinMinIndia) January 31, 2021

The consistent collections of over Rs 1 lakh crore for the last four months and a steep increasing trend over January were 'clear indicators of rapid economic recovery' post pandemic, the ministry added.

The ministry further stated that closer monitoring against fake-billing, deep data analytics using data from multiple sources including GST, Income-tax and Customs IT systems, and effective tax administration have also contributed to the steady increase in tax revenue over last few months.

The average year-on-year growth in GST revenue over the first four months in the second half of the financial year has been 8% as compared to minus 24% during the first half of the year.

About 90 lakh GSTR-3B returns were filed for the month of December up to January 31, 2021.

Out of Rs 1,19,887 crore, Central GST (CGST) is Rs 21,923 crore, State GST (SGST) is Rs 29,014 crore, IGST is Rs 60,288 crore (including Rs 27,424 crore collected on import of goods) and Cess is Rs 8,622 crore (including Rs 883 crore collected on import of goods).

The revenues earned from import of goods are also 16 percent higher than the revenue earned from this source in January 2020. Additionally, the revenues collected from domestic transaction (including import of services) are six percent higher than the revenues from these sources during the same month last year.

GST revenues had topped Rs 1 lakh crore in nine out of 12 months of 2019-20 fiscal. However, in the current fiscal, the revenues have taken a hit due to the Covid-19 pandemic.

Revenue in April was Rs 32,172 crore, followed by Rs 62,151 crore in May, Rs 90,917 crore in June, Rs 87,422 crore in July, and Rs 86,449 crore in August. Collections in September were Rs 95,480 crore, Rs 1,05,155 crore in October, Rs 1,04,963 crore in November and Rs 1,15,174 crore in December.

MS Mani, Senior Director, Deloitte India said, “In addition to the sustained economic revival witnessed in the past few months, the increased GST collections are also on account of the initiatives taken by the tax administration to curtail evasion, monitor input tax credits and build taxpayer profiles based on other databases “

 “ The surge in GST collections observed during the past four months is expected to be sustained in the coming months of the current fiscal with more of service sector activities like aviation, hospitality, entertainment, etc opening up across states since January 21” ,he added.