Economy

At Rs 1.41 trillion, GST collection for April 2021 sets new record

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Goods and services tax (GST) collections hit a record monthly high of Rs 1.41 lakh crore in April, pointing to a recovering economy before the Covid pandemic exploded.

April GST collections, for transactions within the previous month, are 14% above the Rs 1.24 lakh crore collected in March, consistent with official data.

this is often the seventh successive month collections have crossed Rs 1 lakh crore.

the development came despite the second wave of Covid-19 affecting several parts of the country and was indicative of the resilience of Indian businesses, the finance ministry said during a statement on Saturday.

“These are clear indicators of sustained economic recovery during this era,” the ministry said.
Experts said the collections could decline to go ahead because the pandemic surge has led to closures in many nations.

“The all-time high collections which relate to supplies made in March 2021 could now subside to muted collections within the coming month’s thanks to the lower economic activities in April,” said MS Mani, senior director at Deloitte India.

The April revenue comprised central GST of Rs 27,837 crore, state GST of Rs 35,621 crore, integrated GST (IGST) of Rs 68,481 crore, and compensation cess of Rs 9,445 crore.

After IGST settlements by the Centre, states received a complete Rs 58,377 crore in April while the Centre collected Rs 57,022 crore.

Comparable data for April 2020 isn’t available due to the nationwide lockdown that was in situ at the time.

Compliance measures
Measures to extend compliance and check evasion have also boosted collections.

Closer monitoring against fake billing, deep data analytics using information from multiple sources like GST, tax, and customs IT systems, and effective tax administration have contributed to the steady increase in tax income, the finance ministry said.

“The continuing specialise in improving compliance and therefore the steps taken to curb evasion appears to be significantly improving the GST collections,” Mani said.

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