May Mop-up: GST collection above Rs 1 lakh crore; revenues 65% higher than that in May last year

Whereas the quantity borrowed beneath the RBI-enabled mechanism final 12 months was Rs 1.1 lakh crore — there was nonetheless a shortfall, Rs 60,000-Rs 70,000 crore by one estimate — the concept is to borrow some Rs 1.58 lakh crore in 2021-22.

Gross Items and Providers Tax (GST) receipts got here in at Rs 1,02,709 crore in Might, markedly decrease than the report Rs 1,41,384 crore mopped up within the earlier month, but a good sum given the second Covid wave. Might collections largely pertained to the transactions performed in April, so it mirrored the lockdown’s affect solely marginally; the collections may very well be a lot decrease in June (Might transactions).

The federal government stated GST collections reported for Might included the returns filed until June 4, as taxpayers got numerous reduction measures within the type of waiver/discount in curiosity on delayed returns submitting for 15 days within the wake of the second Covid wave. The precise revenues for Might could be greater since all of the prolonged dates have been but to run out, it added.

In current months, the federal government’s GST income has been strong — it has crossed the Rs 1 lakh crore mark for the eight straight month in Might, because of steps taken to curb evasion and in addition a shift of enterprise away from the casual sector, along with a nascent financial restoration that seems to have been rapidly disrupted by the pandemic’s second surge.

For the second 12 months in a row, the Centre will borrow beneath particular, comparatively low-cost mechanism in 2021-22 to bridge a yawning shortfall within the GST compensation cess pool and switch the funds to states as back-to-back loans, sans any consequent fiscal value to states.

Whereas the quantity borrowed beneath the RBI-enabled mechanism final 12 months was Rs 1.1 lakh crore — there was nonetheless a shortfall, Rs 60,000-Rs 70,000 crore by one estimate — the concept is to borrow some Rs 1.58 lakh crore in 2021-22.

The revenues of Might 2021 have been 65% greater than that in the identical month final 12 months, which belonged to transactions in April 2020, which witnessed an entire nationwide lockdown.

Of the Might mop-up, Central GST have been Rs 17,592 crore, state GST Rs 22,653 crire and I-GST Rs 53,199 crore (together with Rs 26,002 crore collected on import of products) and cess proceeds of Rs 9,265 crore (together with Rs 868 crore collected on import of products). “Throughout the month, revenues from import of products was 56% greater and the revenues from home transaction (together with import of providers) are 69% greater than the revenues from these sources throughout the identical month final 12 months,” the finance ministry stated.

“This (Might mop-up) is even if many of the states have been beneath strict lockdown as a result of pandemic. As well as, whereas the taxpayers with turnover above Rs 5 crore needed to file their returns by June 4, which they’d have in any other case filed by Might 20, smaller taxpayers with turnover lower than Rs 5 crore nonetheless have time until first week of July to file the returns with none late payment and curiosity and the income from these taxpayers is deferred until then,” the ministry added.