GST collections at record-high of over Rs 1.15 lakh crore in December 2020

The Finance Ministry said that the continued rise in the GST mop-up, which has crossed the psychological Rs 1 lakh crore-mark for the third straight month in the current fiscal, is due to the combined effect of rapid economic recovery post-pandemic and the drive against GST evaders.

New Delhi: GST collections touched a record-high of over Rs 1.15 lakh crore in December 2020 since the new tax system was implemented. This also shows that the economy continues to reflate after a strict lockdown.

"The gross GST revenue collected in the month of December 2020 is Rs 1,15,174 crore of which CGST is Rs 21,365 crore, SGST is Rs 27,804 crore, IGST is Rs 57,426 crore (including Rs 27,050 crore collected on import of goods) and Cess is Rs 8,579 crore (including Rs 971 crore collected on import of goods). The total number of GSTR-3B Returns filed for the month of November up to 31st December 2020 is 87 lakhs," according to the Finance Ministry statement.

The ministry said that the continued rise in the Goods and Services Tax (GST) mop-up, which has crossed the psychological Rs 1 lakh crore-mark for the third straight month in the current fiscal, is due to the combined effect of rapid economic recovery post-pandemic and the drive against GST evaders.

The gross GST revenue collected in the month of December 2020 was Rs 1,15,174 crore, 12 per cent higher than over Rs 1.03 lakh crore collected in December 2019. For the month of November up to December 31, 2020, 87 lakh, GSTR-3B returns were filed.

"This is the highest growth in monthly revenues for the last 21 months. This has been due to the combined effect of the rapid economic recovery post-pandemic and the nation-wide drive against GST evaders and fake bills along with many systemic changes introduced recently, which have led to improved compliance," the statement said.

It further said that GST revenues during December 2020, have been the highest since the introduction of GST on July 1, 2017. The highest collection till now was Rs 1,13,866 crore in April 2019.

GST collections, which directly reflects the state of economic activity, had plummeted to a record low of Rs 32,172 crore in April after the government imposed a nationwide lockdown to curb the spread of coronavirus. Subsequent easing of lockdown restrictions helped collections rise and it posted its first year-on-year growth in September 2020.

During December 2020, revenues from the import of goods were 27 per cent higher and revenues from domestic transactions (including import of services) are 8 per cent higher than the revenues from these sources during the same month last year.

The Central GST mop-up stood at Rs 21,365 crore, State GST was Rs 27,804 crore, Integrated GST was Rs 57,426 crore (including Rs 27,050 crore collected on import of goods) and Cess was Rs 8,579 crore (including Rs 971 crore collected on import of goods).

The government has settled Rs 23,276 crore to CGST and Rs 17,681 crore to SGST from IGST as a regular settlement. The total revenue earned by the central government and the state governments after regular settlement in the month of December is Rs 44,641 crore for CGST and Rs 45,485 crore for the SGST.

GST revenues have topped Rs 1 lakh crore in 8 out of 12 months of 2019-20 fiscal. However, in the current fiscal, the revenues have taken a hit due to COVID lockdown and the consequent slowdown in the economy.

Revenue in April was Rs 32,172 crore, May (Rs 62,151 crore), June (Rs 90,917 crore), July (Rs 87,422 crore), August (Rs 86,449 crore), September (Rs 95,480 crore), October (Rs 1,05,155 crore), November (Rs 1,04,963 crore) and December (Rs 1,15,174 crore).

The chart below shows trends in monthly gross GST revenues during the current year. The table shows the state-wise figures of GST collected in each state during the month of December 2020 as compared to December 2019.

The GST revenue in April-December 2020 was down 14 per cent compared to the same period last year.