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Home / News / India /  GST revenue hits 1 tn for a fifth month

Goods and services tax (GST) collections by the Centre and states exceeded the 1 trillion mark for the fifth straight month in February, aided by an aggressive drive to improve compliance and recovery in economic activities.

The sustained rise in GST collections, staging a recovery after a steep drop in April when India was in a national lockdown, offers relief to policymakers seeking to bridge a massive revenue shortfall.

Data released by the finance ministry showed GST collections rose 7% to 1.13 trillion in February from a year ago after record collections in January. After the settlement of revenue from inter-state transactions, the Centre received 67,490 crore and states received 68,807 crore in the month. February receipts refer to sales made in January.

“GST revenues crossed 1 trillion for the fifth time in a row and exceeded 1.1 trillion for the third time in a row post the pandemic despite this being revenue collection of the month of February. This is a clear indication of the economic recovery and the impact of various measures taken by tax administration to improve compliance," the finance ministry said in a note.

Stringent steps against fake-invoicing, data analytics using information from various agencies handling GST have contributed to the steady increase in GST collections in recent months.

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