GST collections for October may exceed Rs 1 lakh-crore mark, first time in 8 months

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The goods and services tax (GST) collections are likely to cross Rs 1 lakh crore mark in October for the first time in eight months since the coronavirus-induced restrictions halting economic activity and forced a countrywide lockdown as a preventive measure against the Covid-19.

It is worth mentioning here is that revenue collections from the GST touched its highest level so far this fiscal in September at Rs 95,480 crore, indicating that economic activity is picking up steam in tandem with the easing of lockdown restrictions. Plus, the revenues for the month were 4 percent higher than the total GST collection in the same month last year.

As per the filing of GST returns in October, the indirect tax collection “could be in excess of Rs 1 lakh crore,” officials with knowledge of the matter told the Hindustan Times. That’s going by filing through GST form number 3B (GSTR-3B), a monthly return form and the last date for filing is 20th of every month.

More than 1.1 million GSTR-3B returns had been filed by October 20 as compared with 485,000 by the same day last year, the daily cited one of the officials as saying. So far data collected demonstrate that GST revenue accruals in October robust due to easing of lockdown restrictions and the start of business operations. The festive season gave a boost to household consumption, the officials said on condition of anonymity.

Further, one of the officials mentioned that revenue collections may soar because of enhanced enforcement systems such as e-invoicing and use of AI to plug revenue leakage.

On Friday, the Central government has borrowed and released Rs 6,000 crore as the first tranche of GST compensation under a special RBI window to states 16 states and two Union territories. As of now, 21 States had opted for the Centre’s option to borrow Rs 1.1 lakh crore out of the total Rs 2.35 lakh crore GST compensation shortfall estimated for 2020-21.

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