You are here: Home » Economy & Policy » News
Business Standard

GST mop up rose to highest ever level at over Rs 1.15 trillion in December

Mop up was 10.57% higher month-on-month, and 11.65% higher year-on-year despite an elevated base on both yardsticks

Goods and Services Tax | GST collections

Indivjal Dhasmana  |  New Delhi 

(Illustration: Ajay Mohanty)
(Illustration: Ajay Mohanty)

(GST) collections have hit a record of over Rs 1.15 trillion in December against Rs 1.04 trillion the previous month, raising hopes of economic revival. Before this, the highest GST collection was Rs 1.14 trillion in April 2019.

The collections were 10.57 per cent higher month-on-month and 11.65 per cent higher on a year-on-year basis despite the fact that the base was elevated on both the yardsticks. The government had collected Rs 1.03 trillion in December 2019.

December is the third straight month when the collections crossed the Rs one trillion mark.

Abhishek Jain, partner at EY, said, "crossing Rs 1.15 trillion for the first time ever despite the fact that we are not completely out of the pandemic indicates a remarkable recovery in the economy."

He said some of it could also be due to the plugging of GST revenue leakage by the government on account of fake credits through faudulent invoicing and introduction of e-invoicing. E-invoicing is mandatory for companies with annual turnover of Rs 500 crore form October 2020 onwards and was extended to those with annual turnover of Rs 100 crore from today.

ALSO READ: M&M says likely to conclude deal to sell stake in Ssangyong by Feb end

All the segments of yielded more in December compared to November. For instance CGST collctions rose to Rs 21,365 crore against Rs 19,189 crore, SGST mop increased to Rs 27,804 crore against Rs 25,540 crore. Also integrated GST receipts were more at Rs 57,426 crore against Rs 51,992 crore and compensation cess at Rs 8,579 crore against Rs 8,242 crore.

The finance ministry said in a statement that the GST revenues during December, 2020 have been the highest since the introduction of the indirect tax regime from July, 2017. "It is the first time that it has crossed Rs 1.15 trillion," it said.

Talking about the previous high, the ministry said the revenues of April normally tend to be high since they pertain to the returns of March, which marks the end of financial year.

ALSO READ: Capex slowdown: New projects decline 88.6% over Coronavirus pandemic

The month-on-month growth is the highest since last 21 months, the ministry said.

"This has been due to combined effect of the rapid economic recovery post pandemic and the nation-wide drive against GST evaders and fake bills alongwith many systemic changes introduced recently, which have led to improved compliance," it said.

Till now, GST revenues have crossed Rs 1.1 trillion thrice since the introduction of the levy.

The average growth in GST revenues during the third quarter of 2020-21 has been 7.3 per cent as compared to (-) 8.2 per cent during the second quarter and (-) 41.0 per cent during the first quarter of the financial year, the ministry said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, January 01 2021. 14:44 IST