Goods and Services Tax (GST) collections crossed Rs one trillion mark for the first time in eight months in October, indicating the economy picked from September after India eased a lockdown to contain the spread of the coronavirus. The October collections are for transactions in September.
At Rs 1.05 trillion, collections were not only ten per cent higher than Rs 95,379 crore a year ago but were almost equal to collections in February before the lockdown was announced.
The exact figure for October stood at Rs 105,155 crore, while it was just Rs 211 crore more at Rs 105,366 crore in February.
All collections–central GST (CGST), or state GST (SGST) or integrated GST (IGST) or compensation cess–were higher in October than in September.
For instance, CGST yielded Rs 19,193 crore in October against Rs 17,741 crore in September, SGST delivered Rs 25,411 crore against 23,131 crore. IGST collections stood at Rs 52,540 crore against 47,484 crore. Of this Rs 23,375 crore was collected through import of goods against Rs 22,442 crore in September.
Compensation cess receipts rose to Rs 8,011 crore against Rs 7,124 crore. Of this, Rs 932 crore was collected through import of goods against Rs 788 crore in September.
“This uptick in collections on a month on month basis and over the same month last year is quite a welcome one for the government and the economy in particular,” said Abhishek Jain, tax partner at EY.
He attributed the to rise in demand to festivals, input tax credit and other similar reconciliations which were due to businesses in September.