GST collection becomes the second highest in this fiscal 2021

Goods and Services Tax (GST) mop-up grew by 33 per cent year-on-year in July to over Rs 1.16 lakh crore.

In what can be seen as a sign that economic activity is picking up pace in the country, India's tax collections on goods sold and services rendered returned to over Rs 1 lakh crore in July. The figures are an improvement from the previous month when lockdown-like restrictions were imposed in most states to contain the second wave of Covid-19.

Goods and Services Tax (GST) mop-up grew 33 per cent year-on-year in July to over Rs 1.16 lakh crore, indicating that the economy is recovering at a fast pace. In July 2020, the collection was Rs 87,422 crore.

This is the second highest collection so far this fiscal after a record Rs 1.41 lakh crore mop-up in April.

In the current fiscal, GST mop-up touched a record high of over Rs 1.41 lakh crore in April, but fell to over Rs 1.02 lakh crore in May after the outbreak of the second wave. In June, collection slipped below the psychological Rs 1 lakh crore mark to Rs 92,849 crore followed by a sharp rebound in July to Rs 1.16 lakh crore.

In a statement, the Union Finance Ministry said robust GST revenues are likely to continue even in the coming months.

The gross GST revenue collected in the month of July 2021 is Rs 1,16,393 crore of which Central GST (CGST) is Rs 22,197 crore, State GST (SGST) is Rs 28,541 crore, Integrated GST (IGST) is Rs 57,864 crore (including Rs 27,900 crore collected on import of goods) and cess is Rs 7,790 crore (including Rs 815 crore collected on import of goods).

The revenues for the month of July 2021 are 33 per cent higher than the GST revenues in the same month last year and include GST returns filed between July 1 and July 31, as well as IGST and cess collected from imports for the same period.

"GST collection... dropped below Rs 1 lakh crore in June 2021 as the collections during the month of June 2021 predominantly related to the month of May 2021; and during May 2021, most of the states/UTs were under either complete or partial lockdown due to COVID," the Finance Ministry said.

It went on to add, "With the easing of COVID 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 robust GST revenues are likely to continue in the coming months too."

GST tax collections had topped the Rs 1 lakh crore-mark for eight straight months before the onset of the second wave of Covid-19 led to re-imposition of lockdowns in different states, muting economic activity.