Goods and Services Tax (GST) revenue exceeded Rs1 lakh crore for the second month in a row at Rs104,963 crore in November, registering an annualized growth of 1.4%. Revenues, however, fell marginally by 0.18% compared to the 105,155 crore collected the previous month.
However, GST collections have shown positive growth for the third month in a row after remaining in contraction mode for six months, indicating signs of economic recovery since the Covid-19 pandemic gripped India and forced a shutdown. national in March this year, according to official data released on Tuesday.
“In line with the recent trend of recovery in GST revenues, revenues for the month of November 2020 are 1.4% higher than GST revenues in the same month last year,” said the Ministry of Finance of the Union in a statement.
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Gross GST revenue collected in the month of November 2020 is Rs104,963 crore, of which the Central GST (CGST) is Rs19,189 crore, the State GST (SGST) is Rs25,540 crore, the Integrated GST (IGST) is Rs51,992 crore (including Rs 22,078 crore collected on importing goods), it said.
The compensation fee charged this month is 8,242 million rupees, including 809 million rupees collected on importing goods, it said. Tax collection has shown a marginal increase of around 3% compared to Rs8,011 crore in October 2020. At the time of introducing the new indirect tax regime in July 2017, the GST law ensured states a 14% increase in your annual income for five years (until 2022) and your income deficit should be offset by offsetting tax applied to luxury items and products such as liquor, cigarettes, sparkling water, cars, coal and other products tobacco.
Abhishek Jain, fiscal partner of consulting firm EY said: “Second consecutive month of [Rs] 1 lakh more the collection is certainly indicative of a continued economic recovery and the collections, which are slightly more than in the same month last year, are quite encouraging. This should also help contain the GST collection shortfall caused by the pandemic. “
Based on a sharp decline in GST revenue collection due to implementation issues and the sudden outbreak of the Covid-19 pandemic, the GST Council in August estimated a total revenue shortfall for 2020-21 at Rs2. 35 lakh crore. Of the total amount, Rs1.10 lakh crore is an estimated shortfall in the current financial year due to implementation issues.
The government has set Rs 22,293 crore to CGST and Rs16,286 crore to SGST from IGST as regular settlement. “The total revenue earned by central government and state governments after regular liquidation in the month of November 2020 is 41,482 crore for CGST and 41,826 crore for SGST,” he said.
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