BackGST collections recover
Tax receipts plummeted to ₹32,172 crore in April as India went into a stringent national lockdown.
PremiumIndia’s goods and services tax (GST) receipts rose in September for the first time this fiscal, signalling a recovery after months of turmoil due to the pandemic and offering a glint of hope to policymakers.
GST collections of the central and state governments stood at ₹95,480 crore in September, up 3.8% from a year ago and a 10.4% increase from August.
Tax receipts plummeted to ₹32,172 crore in April as India went into a stringent national lockdown. It has since made a steady recovery with the gradual lifting of curbs on movement and economic activity.
The GST collection figure for September is expected to boost the government’s optimism on a V-shaped economic recovery. The month also saw an unprecedented 15% increase in railway freight traffic against a year ago, railways and commerce minister Piyush Goyal said in a tweet on Thursday.
With a significant part of the economy resuming operations and international trade gaining pace, GST collections have shown decent growth, said Abhishek Jain, tax partner, EY.
“Increased revenues indicate the return to normalcy of business operations, and provide an optimistic outlook in general," he said.
However, the surge in coronavirus cases continues to pose a threat. As on Thursday, the India’s total infections crossed 6.3 million. While the recovery rate has been encouraging, more than 98,000 people have died of covid-19 so far.
Data showed that large states either reported steady revenue receipts compared to the year-ago levels, or an improvement in collections. For instance, Uttar Pradesh’s GST collections stood at ₹5,075 crore in September, almost the same level as a year ago. Maharashtra reported ₹13,546 crore —flat from a year ago. Gujarat reported 6% year-on-year growth in receipts toRs 6,090 crore in September, while Tamil Nadu posted a 15% y-o-y rise to ₹6,454 crore in the month.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
