GST Collections Rise Above Rs 1 Lakh Crore In June
The government’s goods and services tax collection rose above Rs 1 lakh crore in June after falling below that mark in the preceding month, indicating recovery in economic activity.
GST revenue for June, collected in July, stood at Rs 1,16,393 crore, according to a statement from the Ministry of Finance. That's an almost 25% increase over the preceding month, and 33% higher year-on-year.
Breakup of GST collection:
Central GST: Rs 22,197 crore.
State GST: Rs 28,541 crore.
Integrated GST: Rs 57,864 crore (including Rs 27,900 crore collected on import of goods).
Cess: Rs 7,790 crore.
"With the easing out of Covid-19 restrictions, GST collection for July 2021 has again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace," the statement read. "The robust GST revenues are likely to continue in the coming months, too."
"The sharp increase in the collections for June indicates resumption of economic activities in June and will raise expectations of better collections in the coming months," MS Mani, senior director at Deloitte India, said.
”The improvement in GST collections both on domestic transactions and imports, accompanied by the fact that major producing states have shown significant increases, would indicate that the economic activities have resumed across the country”
Rajat Bose, partner at Shardul Amarchand Mangaldas & Co., concurred. ”Collections in July has seen a sharp uptick as compared to June on the back of economic revival due to unlocking of businesses in June," he said. "If the country is able to resist the third wave, the GST collections should increase from hereon.”