GST tax collections remained above Rs 1 lakh crore mark for the eighth straight month in May, indicating that the impression of the devastating second wave of Covid infections on the economic system could have been restricted.
Tax collections on sale of products and rendering of providers in May at Rs 1.02 lakh crore have been 27 per cent decrease than April 2021, however 65 per cent higher than May 2020 when the nation was underneath full lockdown, impacting financial exercise.
“The gross GST revenue collected in the month of May 2021 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 finance ministry stated in a press release.
The above determine consists of GST assortment from home transactions until June 4 since taxpayers got varied reduction measures in the type of waiver/discount in curiosity on delayed return submitting for 15 days for submitting of returns in May on account of second wave of the Covid pandemic, it added.
During May 2021, revenues from the import of products have been 56 % higher, and the revenues from home transactions (together with import of providers) are 69 % higher than that of May 2020.
The assortment determine crossed Rs 1 lakh crore even supposing many of the states have been underneath strict lockdown due to the pandemic, the ministry stated.
In addition, whereas the taxpayers with turnover above Rs 5 crore had to file their returns by June 4, which they might have in any other case filed by May 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 actual revenues for the month of May 2021 thus would be higher and would be known when all the extended dates expire,” the ministry added.
Deloitte India Senior Director M S Mani stated collections above Rs 1 lakh crore pertaining to the transactions in the month of April 21 point out that the financial impression of the lockdowns has been a lot decrease than anticipated. “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 stated regardless of 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 stated the gathering for the month of May 2021 is higher than anticipated. “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.”
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