GST revenue for the month of October stood at over Rs 1.3 lakh crore, indicating that the economy is recovering at a fast pace. The revenue was 24 per cent higher than the GST collection in the same month last month. “The GST revenues for October have been the second highest ever since introduction of GST, second only to that in April 2021, which related to year-end revenues,” said ministry of finance in a statement.
The gross GST revenue collected in October was reported at ₹ 1,30,127 crore. Out of this, CGST was ₹ 23,861 crore, SGST was ₹ 30,421 crore, IGST was ₹ 67,361 crore (including ₹ 32,998 crore collected on import of goods) and cess was ₹ 8,484 crore (including ₹ 699 crore collected on import of goods), according to ministry of finance. “During the month, revenues from import of goods was 39% higher and the revenues from domestic transaction (including import of services) are 19% higher than the revenues from these sources during the same month last year,” the ministry added.
“This is very much in line with the trend in economic recovery. This is also evident from the trend in the e-way bills generated every month since the second wave. The revenues would have still been higher if the sales of cars and other products had not been affected on account of disruption in supply of semi-conductors,” the government said in a statement.
The revenue collection jumped due to the continuous efforts of the state and central administration, “resulting in increased compliance over previous months.” The multi-pronged approach followed by the GST Council and swift action against individual tax evaders, also boosted the GST collection in October. Various measures such as nil filing through SMS, quarterly return monthly Payment (QRMP) system and auto-population of return have been intiated in the last one year to strengthen the GST collection. The GST council also took several steps to discourage non-compliant behaviour — like blocking of e-way bills for non-filing of returns, system-based suspension of registration of taxpayers who have failed to file six returns in a row and blocking of credit for return defaulters, the government added.
GST council also decided to waive late fee allowing people to file old returns and come up-to-date in filing of returns. With more and more taxpayers filing the returns every month, the percentage of returns of old period filed in any month has been increasing continuously, the finance ministry further mentioned.
“The share of returns of the current period filed in every month out of the total returns filed, clearly indicating that the number of returns of the current month has increased considerably. Around 1.5 crore returns were filed in the month of July 2021 as taxpayers filed returns of past months taking benefit of the relaxation given due to Covid-19,” finance ministry said.
On GST collections, Rajat Bose, partner, Shardul Amarchand Mangaldas & Co. said, “The revenue collections for October 2021 is extremely encouraging from economic point of view. This is a sure shot indicator that the economy is on a strong recovery path. This trend is likely to continue in the coming months, if we can prevent a third wave.”
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