Gross Goods and Services Tax (GST) receipts got here in at Rs 1,02,709 crore in May, markedly decrease than the report Rs 1,41,384 crore mopped up within the earlier month, but an honest sum given the second Covid wave. May collections largely pertained to the transactions carried out in April, so it mirrored the lockdown’s impression solely marginally; the collections may very well be a lot decrease in June (May transactions).
The authorities stated GST collections reported for May included the returns filed until June 4, as taxpayers got varied aid measures within the type of waiver/discount in curiosity on delayed returns submitting for 15 days within the wake of the second Covid wave. The precise revenues for May can be increased since all of the prolonged dates had been but to run out, it added.
In latest months, the federal government’s GST income has been strong — it has crossed the Rs 1 lakh crore mark for the eight straight month in May, because of steps taken to curb evasion and likewise a shift of enterprise away from the casual sector, along with a nascent financial restoration that seems to have been shortly disrupted by the pandemic’s second surge.
For the second yr in a row, the Centre will borrow beneath particular, comparatively low-cost mechanism in 2021-22 to bridge a yawning shortfall within the GST compensation cess pool and switch the funds to states as back-to-back loans, sans any consequent fiscal value to states.
While the quantity borrowed beneath the RBI-enabled mechanism final yr was Rs 1.1 lakh crore — there was nonetheless a shortfall, Rs 60,000-Rs 70,000 crore by one estimate — the concept is to borrow some Rs 1.58 lakh crore in 2021-22.
The revenues of May 2021 had been 65% increased than that in the identical month final yr, which belonged to transactions in April 2020, which witnessed an entire nationwide lockdown.
Of the May mop-up, Central GST had been Rs 17,592 crore, state GST Rs 22,653 crire and I-GST Rs 53,199 crore (together with Rs 26,002 crore collected on import of products) and cess proceeds of Rs 9,265 crore (together with Rs 868 crore collected on import of products). “During the month, revenues from import of goods was 56% higher and the revenues from domestic transaction (including import of services) are 69% higher than the revenues from these sources during the same month last year,” the finance ministry stated.
“This (May mop-up) is despite the fact that most of the states have been under strict lockdown due to the pandemic. In addition, while the taxpayers with turnover above Rs 5 crore had to file their returns by June 4, which they would have otherwise filed by May 20, smaller taxpayers with turnover less than Rs 5 crore still have time till first week of July to file the returns without any late fee and interest and the revenue from these taxpayers is deferred till then,” the ministry added.