GST monthly collections set to reach Rs1 lakh crore levels: report
26 October 2020
Revenue collection from the goods and services tax (GST) touched its highest level so far this fiscal in September at Rs95,480 crore, indicating that economic activity is picking up, say reports.
With GST collection reaching Rs95,480 crore in September, for the first time in eight months since the coronavirus-induced restrictions and the countrywide lockdown halted economic activity, GST revenues look set to cross the Rs1 lakh crore mark in October.
At Rs95,480 crore, GST collection in September was 4 per cent higher than the total GST collection in the same month last year.
The festival season also gave a boost to household consumption, say officials.
More than 1.1 million GSTR-3B returns had been filed by October 20 compared with 485,000 filed by the same day last year, reports citing revenue officials said. Available data on GST revenue accruals in October suggest robust inflows due to easing of lockdown restrictions and the restart of business operations.
The centre also ended the impasse over GST compensation to states by transferring Rs6,000 crore as first tranche of GST compensation to 16 states and two union territories, under the special borrowing window.
So far, 21 states had opted for the Centre’s option to borrow Rs1.1 lakh crore out of the total Rs2.35 lakh crore GST compensation shortfall estimated for 2020-21.
The first tranche of Rs6,000 crore was transferred to 16 tates, including Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand and 2 Union Territories of Delhi and Jammu and Kashmir.
The borrowing is at an interest rate of 5.19 per cent. The centre proposes to make weekly releases of Rs6,000 crore to states. Tenor of borrowing is expected to be broadly in the range of 3 to 5 years.