The collection of taxes on goods and services (GST) by the Center and the states exceeded the ₹$ 1 trillion for the fifth consecutive month in February, helped by an aggressive push to improve business compliance and recovery.
The sustained rise in GST collections, which recovers after a sharp drop in April when India was in a national lockdown, offers relief to policymakers seeking to overcome a massive revenue shortfall.
Data released by the Ministry of Finance showed that GST collections increased 7% to ₹1.13 trillion in February from a year earlier, after January’s record collections. After liquidating the proceeds from interstate transactions, the Center received ₹Rs 67,490 crore and status received ₹68,807 crore in the month. The receipts for February refer to sales made in January.
“GST revenue was crossed ₹ 1 trillion for the fifth time in a row and exceeded ₹ 1.1 trillion for the third time in a row after the pandemic despite being the revenue collection for the month of February. This is a clear indication of the economic recovery and the impact of various measures taken by the tax administration to improve compliance, “the Finance Ministry said in a note.
Strict measures against false billing and data analysis using information from various agencies that handle GST have contributed to the steady increase in GST collections in recent months.
.
