Gross Items and Providers Tax (GST) receipts got here in at Rs 1,02,709 crore in Could, markedly decrease than the report Rs 1,41,384 crore mopped up within the earlier month, but a good sum given the second Covid wave. Could collections largely pertained to the transactions carried out in April, so it mirrored the lockdown’s impression solely marginally; the collections might be a lot decrease in June (Could transactions).
The federal government mentioned GST collections reported for Could included the returns filed until June 4, as taxpayers got numerous 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 Could can be larger since all of the prolonged dates have been but to run out, it added.
In current months, the federal government’s GST income has been sturdy — it has crossed the Rs 1 lakh crore mark for the eight straight month in Could, due to 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 below 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 price to states.
Whereas the quantity borrowed below 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 thought is to borrow some Rs 1.58 lakh crore in 2021-22.
The revenues of Could 2021 have been 65% larger than that in the identical month final yr, which belonged to transactions in April 2020, which witnessed a whole nationwide lockdown.
Of the Could mop-up, Central GST have 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). “Through the month, revenues from import of products was 56% larger and the revenues from home transaction (together with import of providers) are 69% larger than the revenues from these sources throughout the identical month final yr,” the finance ministry mentioned.
“This (Could mop-up) is even though a lot of the states have been below strict lockdown because of the pandemic. As well as, whereas the taxpayers with turnover above Rs 5 crore needed to file their returns by June 4, which they might have in any other case filed by Could 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 ministry added.