GST revenue surges past Rs 1 lakh crore in economy uptick
The gross Goods and Services Tax (GST) collections in July (for sales in June) rebounded over the Rs 1-lakh-crore mark to Rs 1,16,393 crore, data released by the Finance Ministry on Sunday showed.
GST collections in July have increased 33 per cent from the corresponding period last year and 25.4 per cent over the previous month, indicating a pickup in economic activity after a series of localised lockdowns in May during the second wave of the Covid-19 pandemic.
GST collections had dropped to a 10-month low of Rs 92,849 crore in June (for sales in May) after topping the Rs 1-lakh-crore mark for eight months. In July 2020, the GST revenue was recorded at Rs 87,422 crore.
The GST revenue for June 2021 is the second-highest in this fiscal after the Rs 1.41 lakh crore collection in April, which is for sales in March of the previous fiscal, but gets accounted in the new fiscal year.
Experts said GST revenues are expected to pick up in the coming months, even though a possible third wave of the pandemic remains a risk.
The Finance Ministry in its statement said the fall in GST revenue in June was predominantly related to the situation in May, when most states and Union Territories were under complete or partial lockdown.