Indirect tax revenues again above Rs.1L cr

After going down below Rs 1 lakh-crore territory in June, Goods and Services Tax (GST) collection in the country has once again crossed the same mark in the just concluded month of July. The revenue through indirect tax had been above Rs 1 lakh-crore mark for eight months in a row, until it dropped to Rs 92,849 crore in June.

GST collections during the month of June predominantly related to the month of May, and during which, most of the States/UTs were under either complete or partial lockdown due to Covid. With the easing out of Covid restrictions, GST collection for July has again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace, said a government statement, adding that the robust GST revenues are likely to continue in the coming months.

The gross GST revenue collected in the month of July is Rs 1,16,393 crore of which CGST is Rs 22,197 crore, SGST is Rs 28,541 crore, IGST is Rs 57,864 crore (including Rs 27,900 crore collected on import of goods) and Cess is Rs 7,790 crore (including Rs 815 crore collected on import of goods). This figure includes GST collection received from GSTR-3B returns filed between July 1-31 as well as IGST and cess collected from imports for the same period.

The revenues for the month of July are 33 per cent higher than the GST revenues in the same month last year. During the month, revenues from import of goods were 36 per cent higher and the revenues from domestic transaction (including import of services) were 32 per cent higher than the revenues from these sources during the same month last year.

"Service activity and production of goods has started gathering momentum as a result of which there is remarkable growth in GST collection during July. This momentum is likely to pick up further in coming months due to favorable environment," former principal chief GST commissioner of Mumbai, Subhash Varshney told Bizz Buzz.

The GST collections at Rs 92,849 crore, had fallen below Rs 1 lakh crore for the first time in eight months in June. It was despite the fact that the revenue generated in June is still 2 per cent higher than the year-ago collection. In fact, the GST revenue collection remained moderate at Rs 1.02 lakh crore in May too.