New Delhi: India’s Gross Goods and Services Tax (GST) revenue collection remained above the psychological mark of Rs 1 lakh crore to hit a high of Rs 1,02,709 crore in May 2021, defying all expectations of lower collections in the wake of disruptions. Given. Second wave of covid-19 pandemic.
Though the GST revenue in May 2021 is lower than the record collection of Rs 1.41 lakh crore made in the previous month, the highest since the introduction of the tax in 2017, they are still significant as most tax experts feared that the real impact of the pandemic and The lockdown in various parts of the country will significantly reduce the GST collection in May.
“The revenue for May 2021 is 65 per cent higher than the GST revenue collected in the corresponding month of last year,” the finance ministry said in a statement.
“During the month, revenue from imports of goods was 56 per cent higher, while revenue from domestic transactions (including import of services) was 69 per cent higher than revenue from these sources during the same month last year.”
According to the statement, the gross GST revenue collected in May 2021 was Rs 1,02,709 crore, of which CGST was Rs 17,592 crore, SGST Rs 22,653 crore, IGST Rs 53,199 crore (including Rs 26,002 crore collected on import of goods) and cess Rs. 9,265 crore (including Rs 868 crore collected on import of goods).
The revenue figures include GST collection from domestic transactions till June 4 as several reliefs to taxpayers in the form of interest subvention or reduction in interest on delayed return filing by 15 days for the return filing month of May in view of the second wave Remedies were given. Of epidemic.
In May, the government settled Rs 15,014 crore from IGST to CGST and Rs 11,653 crore to SGST as regular settlement, the statement said.
With May collections staying above Rs 1 lakh crore, this is the eighth consecutive month that the GST revenue crossed the threshold. The collections are surprising as most states have been under strict lockdown due to the pandemic.
Also, while taxpayers with a turnover of more than Rs 5 crore had to file their returns by June 4, which they would have otherwise filed by May 20, small taxpayers with a turnover of less than Rs 5 crore still have till the first week. there is time. July to file returns without any late fee and interest. The revenue of these taxpayers is deferred till then.
Thus, the actual revenue for the month of May 2021 will be higher and will be known when all the extended dates are over, the finance ministry said.
“The collection for May 2021 is higher than expected. Though most businesses were not functioning in April due to the lockdown, the numbers come as a pleasant surprise. The numbers should increase further, given that many small businesses are yet to file their returns, given the Covid-related exemptions given by the government for such businesses,” said Rajat Bose, Partner, Shardul Amarchand Mangaldas & The company said.
“The collection of Rs 1 lakh crore related to transactions in the month of April 2021 indicates that the economic impact of the lockdown has been much less than expected. The next month’s collection needs to be closely monitored to determine the extent of impact on GST collections in FY12,” said MS Mani, senior director, Deloitte India.