GST collection touches all-time high amid inflation, global volatility | Here's how
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Loading... - Mahit Iyer
- 02 May 2022
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The Goods and Services Tax (GST) revenue collection in India has touched an all-time high of Rs 1.68 lakh crore in April. The GST collection was up 20 per cent from the year-ago period, according to the Finance Ministry.
This augurs well for the government of India as the record collection came at a time when inflation is high and there is global volatility due to the ongoing Russia-Ukraine war. Global economic superpowers, including the US and European countries, are also feeling the heat of inflation.
GST COLLECTION IN INDIA
The gross GST revenue collected in April is Rs 1,67,540 crore.
Out of the total which Central Goods and Services Tax (CGST) is Rs 33,159 crore, State Goods and Services Tax (SGST) Rs 41,793 crore, Integrated Goods and Services Tax (IGST) Rs 81,939 crore (including Rs 36,705 crore collected on import of goods) and cess Rs 10,649 crore (including Rs 857 crore collected on import of goods), the Finance Ministry said.
The gross GST collection in April 2022 is an all-time high and Rs 25,000 crore more than the previous highest collection of Rs 1.42 lakh crore recorded in March this year.
In April last year, the mop-up from Goods and Services Tax (GST) was about Rs 1.40 lakh crore.
WHY?
The Finance Ministry said the growth in GST revenue collection was due to improved compliance and recovery in business activity.
The ministry said there is a "clear improvement in the compliance behaviour, which has been a result of various measures taken by the tax administration to nudge taxpayers to file returns timely, to making compliance easier and strict enforcement action was taken against errant taxpayers identified based on data analytics and artificial intelligence".
Deloitte India Partner MS Mani said while the GST collections in respect of March have always been high, the record collections of Rs 1.68 lakh crore reported are on account of multiple favourable factors, including the recent changes on permitting input tax credits only upon timely compliance by the vendors, as per a PTI report.
HOW?
During the month, revenues from import of goods were 30 per cent higher and the revenues from the domestic transaction (including import of services) are 17 per cent more than the revenues from these sources during the same month last year.
The total number of e-way bills generated in March 2022 was 7.7 crore, which is 13 per cent higher than 6.8 crore in February 2022, which reflects the recovery of business activity at a faster pace, the ministry said.
In April 2022, 84.7 per cent of registered businesses paid taxes by filing GSTR-3B, compared to 78.3 per cent in the year-ago period. Read More...
