Goods and Services Tax (GST) revenue mop-up in September is expected to be around Rs 1.45 lakh crore, an official said. The collection has been over Rs 1.4 lakh crore since March and in August it was Rs 1.43 lakh crore. "Improved business activity is expected to yield better collections in coming months," the official said.
"The average monthly gross GST collection for the first quarter of the FY 2022-23 has been Rs 1.51 lakh crore against the average monthly collection of Rs 1.10 lakh crore in the first quarter of the last Financial year showing an increase of 37%," the Finance Ministry said in a release
The government expects the revival in the economic activity to boost demand for goods and services that were hit during the pandemic.
GST collection had crossed Rs 1.40 lakh crore mark fourth time since inception of GST and third month at a stretch since March 2022, the Finance Ministry said in a release.
The package may be discussed at the next GST Council meeting and could include financial assistance for specific projects, permission for a special levy and flexible borrowing options among others. Finance minister Nirmala Sitharaman had said last week in Parliament that the compensation period will end in June 2022.
The collections crossed the Rs 1 lakh-crore mark again after dipping from the level in June due to lockdowns or restrictions imposed by states amid the Covid second wave.
Closer monitoring against fake-billing, deep data analytics using data from multiple sources including GST, income tax and customs IT systems and effective tax administration have contributed to the steady increase in tax revenue over the last few months
The ministry said that GST revenues collection during March 2021 is the highest since the introduction of GST. In line with the trend of recovery in the GST revenues over the past five months.
September GST mop-up was also higher than August revenues of Rs 86,449 crore, signalling economic pain on account of virus uncertainty is subsiding if not over.
GST mop up fell to Rs 86, 449 crore in August, as against Rs 87,422 crore during July, official data showed on Tuesday, indicating economic pain is far from over.
The government announced GST revenues for the month of June 2020 on the day when GST completes three years of implementation. Even though the June month saw a slight increase in revenue, the first quarter of FY 21 was a dip. The GST collections for the first quarter of the year is 59% of the revenue collected during the same quarter last year.
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