Goods and Services Tax (GST) collections for the month of May stood at Rs 1,02,709 crore, by the Ministry of Finance on Saturday.
The Goods and Services Tax (GST) collections this month, which directly reflect the state of economic activity, is a drop from a record high of over Rs 1.41 lakh crore in April. However, the revenues are 65 per cent higher than the collections in the same month last year.
The government has settled Rs 15,014 crore to CGST and Rs 11,653 crore to SGST from IGST as regular settlement. “During the month, revenues from import of goods was 56% higher and the revenues from domestic transaction (including import of services) are 69% higher than the revenues from these sources during the same month last year," it said.
The gross GST revenue collected in May is Rs 1,02,709 crore of which CGST is Rs 17,592 crore, SGST is Rs 22,653, IGST is Rs 53,199 crore (including Rs 26,002 crore collected on import of goods) and Cess is Rs 9,265 crore (including Rs 868 crore collected on import of goods). The figures includes GST collection from domestic transactions till June 4 since taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month May’21 in the wake of the second Covid-19 wave.
This would be the eighth month in a row that GST revenues have crossed Rs 1 lakh crore mark. This is despite the fact that most of the States have been under strict lockdown due to the pandemic. In addition, while the taxpayers with turnover above Rs 5 crore had to file their returns by June 4, which they would have otherwise filed by May 20, smaller taxpayers with turnover less than Rs 5 crore still have time till first week of July to file the returns without any late fee and interest and the revenue from these taxpayers is deferred till then. The actual revenues for the month of May 2021, thus would be higher and would be known when all the extended dates expire.
Deloitte India Senior Director M S Mani said collections above Rs 1 lakh crore pertaining to the transactions in the month of April 21 indicate that the economic impact of the lockdowns has been much lower than expected. “A close watch is required on the next months collections to determine the extent of the impact on GST collections FY22".
EY Tax Partner Abhishek Jain said despite the aggressive second COVID wave, the GST collections have remained upward of the 1 lakh crore mark for the eight straight month. “Also the dip in comparison to the collections in previous months was expected as these GST collections are for the supplies made in April, when part of the country was in lockdown," Jain added. Shardul Amarchand Mangaldas & Co Partner Rajat Bose said the collection for the month of May 2021 is higher than expected. “Though most of the businesses were not functioning in April due to the lockdown, the numbers come as a pleasant suprise. The numbers should rise further considering that many small businesses are yet to file their returns considering the Covid related relaxations extended by the government for such businesses."
(With PTI inputs)