In a sign that economic revival is getting more pronounced in the unlock phases, country's goods and service tax (GST) collections set to cross the Rs 1 lakh crore mark for the first time during this financial in October.
Sources in the government indicated that collections during October looked healthy as the number of monthly returns (GSTR3B) filed during the month till now has already crossed 75 lakh mark. This is around 15 lakh more than the number of returns filed in September.
With few more days left for the month to get over, the expectation is that October collections would surpass the psychological level of Rs 1 lakh crore mark.
The GST collection number for October actually records the business activity in September. As GST collection trails a month, the numbers are shown in October when the actual returns are filed.
"Things are returning to normal as there is definitive pick in economic activities in the country after a long period of lockdown. Also, the festival buying by whole-sellers to stock goods for sale in October has also kept GST collections high," said a government source.
The GST collection in October 2019 stood at Rs 95,380 crore. So, if final October number for this year is higher than Rs 1 lakh crore, collections would be seen as bouncing for the first time on yoy basis also.
GST collection in FY21 so far has shown encouraging trend. Stating with a steep fall in April due to Covid-19 induced lock down and subsequent disruption in economic activity, collections have maintained healthy trend thereafter.
The GST collection for the month of April was Rs 32,294 crore which was a mere 28 per cent of the revenue collected during the same month last year and for May was Rs 62,009 crore, which was 62 per cent of the revenue collected during the same month last year.
In June, GST collections recovered to touch Rs 90,917 crore. However, it fell again to Rs 87,422 crore in July, before falling further in August to Rs 86,449 crore. GST revenue collection in September 2020 stood at Rs 95,480 crore.