GST collection surge to record `1.41L cr in Apr.

GST collections in April are 14 % higher than `1.23L crore mopped up in March

New Delhi, May 1: GST collections crossed the `1 lakh crore mark for the seventh month in a row and touched a record high of over `1.41 lakh crore in April, indicating economic recovery, the Finance Ministry said on Saturday.

The Goods and Services Tax (GST) collections, which directly reflect the state of economic activity, in April are 14 per cent higher than `1.23 lakh crore mopped up in March.

In April last year, the revenue had plummeted to a record low of `32,172 crore, after the government imposed a nationwide lockdown to curb the spread of coronavirus.

As economic activity picked up, GST collections started crossing the `1 lakh crore mark since October last year.

The gross GST revenue collected in the month of April 2021 is at a record high of Rs 1,41,384 crore, of which CGST is `27,837 crore, SGST `35,621 crore, IGST `68,481 crore (including `29,599 crore collected on import of goods) and cess `9,445 crore (including `981 crore collected on import of goods).

During April, revenues from domestic transaction (including import of services) are 21 per cent higher than in March.

“GST revenues have not only crossed the `1 lakh crore mark successively for the last seven months but have also shown a steady increase. These are clear indicators of sustained

THE GOODS and Services Tax collections, which directly reflect the state of economic activity, in April are 14 per cent higher than `1.23 lakh crore mopped up in March

economic recovery during this period. Closer monitoring against fakebilling, deep data analytics using data from multiple sources including GST, income-tax and customs IT systems and effective tax administration have also contributed to the steady increase in tax revenue," the ministry said.

Tax experts, however, said that since the April collections reflect economic activity in March, the GST mop-up in the coming months could see decline owing to lockdowns in certain parts of the country to curb surge in Covid cases. Deloitte India Senior Director M.S. Mani said, “The all-time high collections which relate to supplies made in March 2021 could now give way to muted collections in the coming months due to the lower economic activities in April.”

Shardul Amarchand Mangaldas & Co. Partner Rajat Bose said the collection figures for April represent the tax collected towards transactions done in the month of March 2021. “Since its the year end, most companies close their books and raise invoices during the financial close.”