GST collections may cross Rs 1 lakh-crore mark for the first time in 8 months

Goods and Services Tax (GST) collections, a barometer of financial well being, are anticipated to exceed Rs 1 lakh crore in October for the primary time in eight months because the coronavirus illness (Covid-19) pandemic gripped India and compelled a nationwide lockdown, in line with two officers with direct data of the scenario.

Available knowledge present that GST income accruals within the month have been strong as extra companies emerged from the lockdown, financial exercise gained larger momentum and the festive season gave a fillip to family consumption, the officers stated on situation of anonymity.

Going by the submitting of GST returns, the oblique tax assortment in October “could be in excess of Rs 1 lakh crore,” one of many officers stated. That’s going by returns filed by GST type quantity 3B (GSTR-3B), a month-to-month abstract of transactions filed by taxpayers by October 20, the final date for submitting of GST returns for the earlier month. Over 1.1 million GSTR-3B returns had been filed by October 20 in comparison with 485,000 by the identical day final 12 months, the primary official stated.

That’s excellent news for the federal government, which is borrowing Rs 1.1 lakh crore to compensate states for part of the estimated Rs 2.35 lakh shortfall this fiscal 12 months of their share of income from GST.

The Covid-19 illness outbreak compelled a 68-day laborious lockdown beginning on March 25, which compelled the short-term closure of producers and repair suppliers in all sectors however these deemed important. These had been steadily loosened.

Tax collections rebounded for the primary time since March in September with a modest 4% y-o-y improve Rs 95,480 crore.

The second official cited above stated income collections are additionally anticipated to extend due to improved enforcement programs resembling e-invoicing and use of AI to test income leakage. The authorities launched the e-invoicing system on October 1 for companies having an annual turnover of greater than Rs 500 crore a 12 months; by January 1, the turnover threshold could also be lowered to Rs 100 crore.