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GST Collections for June Drops Below Rs 1 lakh Crore, First Time in 8 Months

During May, 2021, most of the States/UTs were under either complete or partial lock down due to COVID

During May, 2021, most of the States/UTs were under either complete or partial lock down due to COVID

The GST collection had dropped below Rs 1 lakh crore for the first time Since September 2020.

The Goods and Services Tax (GST) revenue for June stood at Rs 92,849 crore, the finance ministry said in a statement. Out of this, Central GST is Rs 16,424 crore, State GST Rs 20,397, Integrated GST Rs 49,079 crore (including Rs 25,762 crore collected on import of goods) and Cess is Rs 6,949 crore (including Rs 809 crore collected on import of goods), the ministry said. The revenues for the month of June 2021 are 2% higher than the GST revenues in the same month last year.

The GST collection had dropped below Rs 1 lakh crore for the first time Since September 2020. “The GST collection for June, 2021 is related to the business transactions made during May, 2021. During May, 2021, most of the States/UTs were under either complete or partial lock down due to COVID. The e-way bill data for the month of May 2021 shows that during the month, 3.99 crore e-way bills were generated as compared to 5.88 crore in the month of April 2021, down by more than 30%," the finance ministry said.

“However, with reduction in caseload and easing of lockdowns, the e-way bills generated during June 2021 is 5.5 crore which indicates recovery of trade and business. The daily average generation of e-way bill for the first two weeks of April 2021 was 20 lakh, which came down to 16 lakh in last week of April 2021 and further to 12 lakh in the two weeks between 9th to 22nd May. Thereafter, the average generation of e-way bills has been increasing and has reached again to 20 lakh level since week beginning 20th June. Therefore, it is expected that while the GST revenues have dipped during the month of June, the revenues will see an increase again from July 2021 onwards," it further added.

On GST collections for June, M.S Mani, senior director, Deloitte India said,

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“While the collections are lower than Rs 1 lakh crore, which had become the norm for the past few months, considering the fact that it relates to transactions in May 2021 which was badly impacted by the pandemic, it would be considered as a very satisfactory collection. These numbers also reflect the economic resilience shown during the recent pandemic phase."

“The collections for the month of June 2021 are lower than expected. It is probably because of the complete or partial lockdown imposed by most of the States. However, given that the 2nd wave is behind us, we should see a rebound in the collection figures for the coming months," said Rajat Bose, partner, Shardul Amarchand Mangaldas & Co.

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first published:July 06, 2021, 17:31 IST