The covid-19 pandemic has given a setback to the goods and services tax (GST) collections through India so far, the fiscal year obtaining lower than half of the revised full-year target. The central government has obtained only 47% of the amended full-year target of Rs 6.90 lakh crore GST collections. It is to note down that the yearly GST figures in the budget credentials under the center and the Integrated GST segment.
It has been noted that out of the total tax collections beneath GST 84% has come from the central GST (Rs 5.80 lakh crore), and 16% (Rs 1.10 lakh crore) from the GST compensation cess.
GST Collections FY21 Target Struck by 25%
As per the central budget 2021, the council has amended its approximation through 25% to Rs 5.15 lakh crore from Rs 6.91 lakh crore for the current fiscal. Central GST (CGST) – the expectation was up to INR 4.31 lakh crore from earlier of Rs 5.8 lakh crore. GST compensation cess brought to 84,100 crores from INR 1.10 lakh crore.
However, Rs 2.43 lakh crore has been collected (CGST + GST compensation cess), which is Rs 2.72 lakh crore or 52.81% lower than the total target of 5.15 lakh crore for the current fiscal. With respect to the amended target of Rs 4.31 lakh crore, so far this financial CGST collection stands at Rs 1.71 lakh crore. The total GST cess has stood at Rs 72,248 crore, as against the revised estimates of Rs 84,100 crore.
Due to lockdown in the initial days of the covid-19, the government has collected total gross GST revenues of Rs 10.12 lakh crore during April 2020-February 2021, with respect to the total GST collection of Rs 12.22 lakh crore in 2019-20. In the lockdown months of April and May 2020, GST revenues had fallen suddenly by 50% on the year.
In the unlock phase and the recovery of the economy, the GST collection has been increasing since September-2020. Since October 2020 the GST revenue has been implemented exceeding the 1 lakh cr per month. In Feb 2021 the monthly GST revenues have been topped with Rs 1 lakh cr mark in the row. The revenue for the month of Feb 2021 was 7% more than the GST revenues for a similar month. GST collection stood at Rs 1.05 lakh crore in February 2020. The total GST revenue stated of Central GST, State GST, Integrated GST, and Cess.
For the succeeding financial year 2021-22, the government has approximated the target of Rs 6.3 lakh cr which is 22.3% or Rs 1.14 lakh crore exceeds its amended estimate for the present FY.
