After eight months for the first time, the Goods and Services Tax (GST) collection dropped below the Rs 1 crore mark in the month of June. This was mainly due to State-specific lockdown in the wake of the second Covid wave.
Goods and Services Tax (GST) Collection
The gross collection of revenues from CST amounted to Rs 92,849 crore in June, of which Central GST is Rs 16,424 crore (including Rs 25,762) collected on imports of goods, State GST Rs 20,397, Integrated GST Rs 49,079 crore, and Rs 6,949 crores (including Rs 809 crore collected on import of goods).
The June 2021 GST collection relates to the business operations of May 2021. Most states and UTs were locked down by Covid during May, either completely or partially.
The unprecedented second wave of Covid compelled the state to impose lock-down actions to curb its spread. The majority of the States shut down their businesses and industries in cases peaking in May. However, over the same period a year ago, GST revenues were 2% higher. The collections were Rs 90,917 crore in June 2020.
For eight months, the GST collection was kept over the Rs 1 lakh crore mark and was recorded at Rs 1.02 lakh crore in May. In addition, e-way bill generation declined by more than 30 percent in April to 3.99 in May, from 5.88 crores.
The e-way bills generated during June 2021 however are Rs 5.5 Crore, indicating the recovery of trade and business with reduced caseload and facilitating lockdown.
By: Shailaja K