The government earned Rs 1.3 lakh crore from the goods and services tax (GST) in October, the second most significant amount since the tax’s implementation in 2017, reflecting a solid trend of continued economic recovery in the second half of the fiscal year.
The most significant income ever reported was Rs 1.41 lakh crore in April 2021. Revenues for October are 24% higher year on year and 36% higher than revenues for the same month in FY20.
“This is very much in keeping with the trend in economic recovery,” the finance ministry said Monday in a statement. Recovery may also be seen in the monthly trend of e-way bills generated since the second wave.
“Revenues would have been greater if vehicle and other product sales had not been hampered by the disruption in supply of semi-conductors,” the ministry observed.
Revenues have been boosted by higher compliance in recent months as a result of state and federal tax administration measures, as well as an increase in the percentage of returns filed that result in prompt payment of taxes. To stem income gaps, the government has also taken action against individual tax evaders.
The GST Council has also implemented other initiatives to facilitate compliance, including free filing through SMS, allowing the Quarterly Return Monthly Payment (QRMP) system, and auto-population of returns.
“Over the last year, GSTN has significantly increased system capacity to improve user experience,” the ministry added.
Various efforts have been made to deter non-compliant behaviour, such as banning e-way bills for non-filing of returns and the system-based suspension of taxpayer registration.
Following the last day for submitting returns, special efforts are made to guarantee compliance by the end of the month, including communications from GSTN and careful monitoring by the Centre and State tax administrations.
In October 2021, the gross GST income collected is Rs 1,30,127 crore, of which CGST is Rs 23,861 crore, SGST is Rs 30,421 crore, IGST is Rs 67,361 crore (including Rs 32,998 crore received on import of goods), and Cess is Rs 8,484 crore (including Rs 699 crore collected on import of goods).
As part of the standard settlement, the government paid Rs27,310 crore to CGST and Rs22,394 crore to SGST from IGST. After regular payments, the total income of the Centre and the States in October 2021 is Rs 51171 crore for CGST and Rs 52,815 crore for SGST.
Income from imports of products was 39 percent higher during the month, while revenue from domestic transactions (including imports of services) was 19 percent higher than during the same month the previous year.