Gross Goods and Services Tax (GST) revenues in August fell to ₹1.12 lakh crore from ₹1.16 lakh crore in July, the Finance Ministry said.
The August GST revenues are 30% higher than the same month a year ago but 3.75% lower than July 2021.
During August this year, the revenues from domestic transactions (including import of services) were 27 per cent higher than the revenues from these sources during the same month last year.
Bifurcation of August collection
Out of the ₹1,12,020 crore revenues in August, Central GST was ₹20,522 crore, State GST ₹26,605 crore, and Integrated GST stood at ₹56,247 crore (including ₹26,884 crore collected on import of goods).
Compensation Cess ₹8,646 crore was collected, of which import of goods contributed ₹646 crore.
Bounce back
The GST collection, after posting above Rs 1 lakh crore mark for nine months in a row, dropped below Rs 1 lakh crore in June 2021 due to the second wave of COVID.
With the easing out of COVID restrictions, GST collection for July and August 2021 have again crossed Rs 1 lakh crore.
Comment from finance ministry
“With the easing out of Covid restrictions, GST collection for July and August 2021 have again crossed ₹1 lakh crore, which clearly indicates that the economy is recovering at a fast pace.”
“The total revenue of Centre and the States after regular and ad-hoc settlements in the month of August’ 2021 is ₹55,565 crore for CGST and ₹57,744 crore for the SGST.”
Analysts view
Aditi Nayar, Chief economist at ICRA, “The sequential dip in GST revenues ‘belied the healthy improvement in the e-way bills to a daily average of 2.1 million in July 2021 from 1.8 million in June 2021, which was reflective of the lifting of restrictions especially across the Southern States.”
“The dip in GST collections, lower-than-expected core sector growth, and moderation in the August manufacturing PMI suggest that some caution is warranted regarding the strength of the recovery that is underway in the ongoing quarter.”
Rating agency’s economist, “We expect GDP growth in the ongoing second quarter of 2021-22 to range between 7.8%-8.8%, with the absolute level of GDP to continue to trail the pre-pandemic level as the services sector struggles to catch up with the rest of the economy.”
“But the government exuded confidence that the ‘robust GST revenues are likely to continue’ in the coming months as well, as ‘economic growth’ and anti-evasion activities, especially against ‘fake billers’ have been contributing to the enhanced GST kitty.”
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