March GST Collection May Set New Record of INR 1.30 Lakh Crores

Tax revenue from Indirect Tax collected by the Government i.e. Goods and Services Tax (GST) is mushrooming every month after the corona situation is in control. In January 2020 also, it soared to INR 1,19,875 crore and in March 2021, it might cross the record of January (INR 1,19,875 crore) i.e. by at least INR 10,000 crore.

The reason for such a backdrop can be attributed to rapid economic recovery from the Covid-19 pandemic. Moreover, the technology of e-invoicing has also made it difficult to evade tax.

It is worth mentioning that India’s economy had shrunk by 24.4% in the three months that ended June 30, 2020, and 7.3% in the three months ended October. This time, the government is expecting the entire year’s GDP contraction at 8%. After a contraction of 6 months since March 2020, GST collections started increasing from September 2020. In fact, GST collections were merely INR 32,172 crore in April 2020; however, it hit a high figure of INR 1,19,875 crore in January 2021.

The compulsory GST e-invoicing system Get to know about the new E-invoice generation system on government GST portal with applicability. The system mandates to generate e-invoice for every sale by a registered business that was implemented in January 2021 has plugged business-to-business (B2B) tax evasion to a high extent i.e. transactions above INR 100 crores are mostly B2B.

There are 2 other reasons also for this tectonic shift– One is the temporary freeze on refunds and the other is the fiscal year closing on March 31.
So, after a setback of COVID-19, the economic indicators of the Indian economy are favoring it.