New Delhi: GST collections crossed the Rs 1 lakh crore-mark for the fifth month in a row in February, rising 7 per cent annually to over Rs 1.13 lakh crore, indicating economic recovery, the Finance Ministry said Monday. Goods and Services Tax (GST) collections had risen for two straight months to touch record Rs 1,19,875 crore in January and Rs 1.15 lakh crore in December.
The gross GST revenue collected February 2021 is Rs 1,13,143 crore, of which Central GST is Rs 21,092 crore, State GST is Rs 27,273 crore, Integrated GST is Rs 55,253 crore (including Rs 24,382 crore collected on import of goods) and Cess is Rs 9,525 crore (including Rs 660 crore collected on import of goods).
GST revenue in February last year was Rs 1.05 lakh crore.
“In line with the trend of recovery in the GST revenues over past five months, the revenues for the month of February 2021 are seven per cent higher than the GST revenues in the same month last year,” the Finance Ministry said in a statement.
“During the month, revenues from import of goods were 15 per cent higher and the revenues from the domestic transaction (including import of services) are five per cent higher than the revenues from these sources during the same month last year,” the ministry added.
GST revenues surpassed Rs 1 lakh crore-mark fifth time in a row and crossed Rs 1.1 lakh crore for the third consecutive month post-pandemic. This is a clear indication of the economic recovery and the impact of various measures taken by tax administration to improve compliance, the ministry said.
GST collections, which directly reflect the state of economic activity, had plummeted to a record low of Rs 32,172 crore in April 2020, after the government imposed a nationwide lockdown to curb the spread of coronavirus.
Meanwhile, the Finance Ministry has released Rs 1.04 lakh crore GST compensation to states since October to meet the shortfall in revenue.
The lockdown, categorised by several agencies as one of the strictest in the world, pummelled the economy as demand dried up and non-essential businesses were shuttered. In the April-June quarter, the economy contracted by the steepest ever 24.4 per cent, and 7.3 per cent in the September quarter. However, in October-December it came back in positive territory with 0.4 per cent growth.
