GST collection slips lower
GST collection slips lower than Rs 1 lakh crore in June after staying over that mark for eight consecutive months.
The Centre has mopped up 92,849 crores of the tax in June, which includes CGST 16,424 crore, SGST 20,397 crore, IGST 49,079 crore (which also includes Rs 25,762 crore collection on import of goods), and Cess is Rupees 6,949 crore (which includes collection Rupees 809 crore on import of goods)
The collection is above standard for June since the collections are related to May transactions. In May, localised lockdowns had affected several businesses climates, and the E-way bills for May receive a slowdown in transactions. As a result, Rupees 3.99 crore e-way bills in May while it was Rupees 5.88 crore for April.
As the second wave of tapers and vaccinations picks up, the business climate is expected to improve GST collections’ bounce-back to more than Rs 1 lakh crore.
“The e-way bills of June 2021 is 5.5 crores Due to Reduction in the cases and ease in lockdown, reflecting a recovery in trade and business,” according to some officials.
“The collections go lower in June 2021 when compared to the previous month, the pace of the e-way bills had fallen in the corresponding period as the state-level restrictions have widened. Thus, despite the decline to a 10-month low, the June 2021 the tax collections provide a positive surprise,” Aditi Nayar, the chief economist of ICRA, said.
The collection of FY22 was twice than the last year, Due to the impact of lockdowns this year. However, the rebound in business activity will improve the revenue situation for the government as it plans to spend its way out of the Covid downturn.