November 28, 2021
  • November 28, 2021

GST collection in September jumps 23% to 1.17 billion yen

By on October 1, 2021 0

Tax revenue in September showed continuous improvement since June, when revenue fell below the ??$ 1 trillion due to mobility restrictions imposed to combat the second wave of the coronavirus pandemic, data released by the Union’s finance ministry showed on Friday.

After settlement of interstate transactions, the Center collected ??49,390 crore as the States collected ??50,907 crores.

Among the major state economies, Punjab, Haryana, Delhi, Rajasthan, Uttar Pradesh, West Bengal, Odisha, Gujarat, Maharashtra, Karnataka, and Tamil Nadu recorded two-fold growth. GST collections figures compared to a year ago.

“Most of the major manufacturing states reporting growth of over 20% over last year indicate that an economic recovery is clearly underway in key states,” said MS Mani, indirect tax partner at Deloitte.

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In the kitten

NEW DELHI: Collection of central and state governments ??Goods and services taxes (GST) 1.17 trillion in September, a 23% jump from collections a year ago in what the central government called a sign of “rapid” economic recovery.

Tax revenue in September showed continuous improvement since June, when revenue fell below the ??$ 1,000 billion due to mobility restrictions imposed to combat the second wave of the coronavirus pandemic, data released by the Union’s finance ministry showed on Friday.

After settlement of interstate transactions, the Center collected ??49,390 crore as the States collected ??50,907 crores.

Among the major state economies, Punjab, Haryana, Delhi, Rajasthan, Uttar Pradesh, West Bengal, Odisha, Gujarat, Maharashtra, Karnataka, and Tamil Nadu recorded two-fold growth. GST collections figures compared to a year ago.

“Most of the major manufacturing states reporting growth of over 20% over last year indicate that an economic recovery is clearly underway in key states,” said MS Mani, indirect tax partner at Deloitte.

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Abhishek Jain, Tax Partner, EY, said that with the holiday season approaching, we can expect a slight increase in GST collections.

In September, revenues from importing goods were 30% higher while revenues from domestic transactions (including importing services) were 20% higher than last year, the ministry said. By September of last year, GST collections had jumped 4%.

Meanwhile, the average monthly GST gross receipts for the September quarter increased to ??1.15 trillion. This is a 5% improvement over the ??1.10 trillion viewed in the June quarter.

“This clearly indicates that the economy is recovering at a rapid pace. Coupled with economic growth, anti-evasion activities, especially actions against bogus billers, have also helped improve GST collection. The positive trend in income is expected to continue, and the second half of the year will show higher income, “the finance ministry said.

The central government also released the GST compensation of ??22,000 crore to states to fill their GST revenue gap.

Previously, the Center transferred ??75,000 crore to the states for their debt-financed GST compensation.

Official data on Thursday showed that the output of six infrastructure industries accounting for two-fifths of the country’s industrial output grew by 11.6% per year in August. The GST collected in September relates to transactions that took place in August.

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