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GST collection in February tops Rs 1 lakh crore; 7% increase from the year-ago month

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GST collection in February tops Rs 1 lakh crore; 7% increase from the year-ago month

Goods and service tax collections in February clocked Rs 1.13 lakh crore, up 7% from the same month last year on the back of various measures taken by the government to improve compliance.

Revenue collection crossed Rs 1 lakh crore for the fifth time in a row and crossed Rs 1.1 lakh crore-mark for the third time in a row post pandemic, the department of revenue said Monday.

“This is a clear indication of the economic recovery and the impact of various measures taken by tax administration to improve compliance,” the department said in a statement.

Of the gross GST revenue collected in February 2021 of Rs 1.13 lakh crore, Central GST was Rs 21,092 crore, state GST was Rs 27,273 crore, integrated GST was Rs 55,253 crore which included Rs 24,382 crore collected on import of goods and Cess was Rs 9,525 crore, including Rs 660 crore collected on import of goods.

The government has also settled Rs 22,398 crore to CGST and Rs 17,534 crore to SGST from IGST as regular settlement.

In addition, Centre has also settled Rs 48,000 crore as IGST ad-hoc settlement in the ratio of 50:50 between Centre and states and union territories. The total revenue of Centre and the states after regular settlement and ad-hoc settlement in the month of February 2021 is Rs 67,490 crore for CGST and Rs 68,807 crore for the SGST.

Separately, the government also released the 18th weekly instalment of Rs 4,000 crore to the states to meet the GST compensation shortfall, taking the total amount released to Rs 1.04 lakh crore.

The government had set up a special borrowing window in October, 2020 to meet the estimated shortfall of Rs 1.1 lakh crore in revenue arising on account of implementation of GST. The borrowings are being done through this window by the Centre on behalf of the states.

Till now, 94% of the total estimated GST compensation shortfall of Rs 1.1 lakh crore has been released. An additional borrowing permission of Rs 1,06,830 crore has been granted to the states, which is equivalent to 0.5% of their gross domestic product.

(The one-stop destination for MSME, ET RISE provides news, views and analysis around GST, Exports, Funding, Policy and small business management.)

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