India Collected 1.03T Rupees as GST Amid Lockdowns in May

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India last month collected 1.03 trillion rupees ($14 billion) under the goods and services tax, lower than a record mop-up of 1.41 trillion rupees in April, as key cities remained under strict curbs to check the spread of new coronavirus infections.

Revenue collection was 27% lower than April but remained above a trillion rupees for the eighth month in a row, according to the Finance Ministry statement released Saturday. The government had allowed businesses various relaxations, in the form of waivers and reduction in interest on delayed filing in light of the deadly wave of Covid-19.

“The actual revenues for the month of May 2021, thus would be higher and would be known when all the extended dates expire,” the ministry said.

Resilient tax collection is crucial for the stability of the government’s revenue position at a time when a number of sectors are seeking relief measures to mitigate the impact from extended lockdowns. The nation’s consumer confidence dropped to a record low in May as household spending, even on essentials, showed moderation, according to a Reserve Bank of India survey.

©2021 Bloomberg L.P.

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