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GST collection
GST collections hit record high of Rs 1.24 lakh crore in March

GST collections hit record high of Rs 1.24 lakh crore in March

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GST collections rose 27% to hit a record high of nearly Rs 1.24 lakh crore in March, helping to narrow the deficit for the full financial year to around 7%.

The mop-up — based on sales in February 2021, for which returns were filed in March — was boosted by imports with revenue from imported goods jumping 70%, while those from domestic transactions, including services imports, were 17% higher than the corresponding period in 2020.

The impact of the coronavirus pandemic was first seen in February 2020 when the lockdown in Wuhan resulted in a disruption of shipments coming from China, where the deadly virus was first spotted.

“GST revenues crossed above Rs 1 lakh crore mark at a stretch for the last six months and a steep increasing trend over this period are clear indicators of rapid economic recovery post pandemic. Closer monitoring against fake billing, deep data analytics using data from multiple sources including GST, income-tax and customs IT systems and effective tax administration have also contributed to the steady increase in tax revenue over last few months,” the finance ministry said in a statement.

Although the base effect will come into play in the coming months, there has been a sustained recovery with collections rising 14% during the March quarter compared to 8% during October-December 2020. During the first half of 2020-21, GST collections had declined following the lockdown.

“It (collection growth) clearly shows a sustained economic recovery and also is a result of GST audit closures and the government tightening compliance and anti-evasion measures,” said Pratik Jain, who leads the indirect tax practice at consulting firm PwC.

What is providing even more comfort to experts is the growth in collections across all the states. “In addition to the trend of higher overall GST collections over the past six months, all major states have shown a significant increase compared to the previous year. Further the increase in collections on imports accompanied by the increase in domestic transactions would indicate that the overall production/consumption cycle is back to normal,” said MS Mani, senior director at Deloitte India.

Source: Times-Of-India.

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GST collection
February 2021 GST collection at Rs 1.13 lakh crore: Finance ministry

February 2021 GST collection at Rs 1.13 lakh crore: Finance ministry

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The GST collection in February this year stood at Rs 1.13 lakh crore, according to the data released by finance ministry on Monday.

This is the fifth straight month of the GST collection exceeding the Rs 1 lakh crore-mark. The current mop-up is an increase of 7 per cent over the February collection last year.

This is a clear indication of the economic recovery and the impact of various measures taken by tax administration to improve compliance, the finance ministry

“In line with the trend of recovery in the GST revenues over past five months, the revenues for the month of February 2021 are 7 per cent higher than the GST revenues in the same month last year,” the ministry said in a statement.

“During the month, revenues from import of goods were 15 per cent higher and the revenues from the domestic transaction (including import of services) are 5 per cent higher than the revenues from these sources during the same month last year,” the statement added.

In January 2021, the GST collections had surged to all-time high of about Rs 1.20 lakh crore as economic activities picked up after the withdrawal of stringent lockdown restrictions.

Mop-up from the Goods and Services Tax (GST), which is levied when a consumable item is sold or a service such as travel booking rendered, in January was 8 per cent higher than such receipts in the same month of 2020.

In a statement, the finance ministry had said that the January 2021 collections were the highest ever since the implementation of the nationwide tax in July 2017.

The previous best was in December 2020 when Rs 1,15,174 crore was collected.

Source: Times-Of-India.

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gst-compensation
Centre releases 14th installment of Rs 6,000 crore to states to meet GST compensation shortfall

Centre releases 14th installment of Rs 6,000 crore to states to meet GST compensation shortfall

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The Centre has released the 14th instalment of Rs 6,000 crore to states as a back-to-back loan to meet the compensation shortfall in collection of goods and services tax, taking the total amount released so far through the special borrowing window to Rs 84,000 crore, the finance ministry said on Monday.

“Till now, 76% of the estimated GST compensation shortfall has been released to the states & UT with legislative assembly,” the ministry said.

Of this amount, Rs 76,616.16 crore has been released to the States and an amount of Rs 7,383.84 crore has been released to the 3 UTs with Legislative Assembly.. Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

The amount was borrowed this week at an interest rate of 4.6144%, while the average interest rate was 4.7395%.

An additional borrowing permission of Rs 1,06,830 crore has been granted to the states, it added, equivalent to 0.5% of their gross domestic product.

All states have now taken the Rs 1.1 lakh crore option, where the Centre will borrow the amount and transfer it to the states as loans.

The Centre had offered the state two borrowing options – Rs 97,000 crore and Rs 2.35 lakh crore – with different sets of conditions for each to meet the GST compensation shortfall. The Centre sweetened the first option by increasing the borrowing to Rs 1.1 lakh crore.

Some states initially declined to take any of the options but later chose the first option. The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall arising on account of implementation of GST.

Source: Economic-Times

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GST collection
GST collections for Jan 2021 touch all-time high of Rs 1.2 lakh crore

GST collections for Jan 2021 touch all-time high of Rs 1.2 lakh crore

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Goods and service tax (GST) collections for January 2021 touched an all-time high of Rs 1.19 lakh crore since introduction of GST regime, the finance ministry said Sunday.

“The GST revenues during January 2021 are the highest since the introduction of GST and have almost touched the ₹ 1.2 lakh crore mark, exceeding last month’s record collection of ₹1.15 lakh crore,” the ministry said.

The consistent collections of over Rs 1 lakh crore for the last four months and a steep increasing trend over January were ‘clear indicators of rapid economic recovery’ post pandemic, the ministry added.

It attributed the continued rise in collections to closer monitoring against fake-billing, deep data analytics using data from multiple sources including GST, income-tax and customs IT systems and effective tax administration.

The average year-on-year growth in GST revenue over the first four months in the second half of the financial year has been 8% as compared to (-) 24% during the first half of the year, the ministry added.

GST collections for January 2021 – touching the Rs 1.2 lakh crore mark – were 8% higher than last year collections of over Rs 1.1 lakh crore. During the month, revenues from import of goods was 16% higher and the revenues from domestic transactions including import of services, was 6% higher in the same period.

The gross GST revenue collected in the month of January 2021 till 6pm on January 31, 2021 stood at Rs 1,19,847 crore of which central GST was Rs 21,923 crore, state GST was Rs 29,014 crore, integrated GST was Rs 60,288 crore, which included Rs 27,424 crore collected on import of goods. Of the total collections, cess was Rs 8,622 crore which included Rs 883 crore collected on imports.

About 90 lakh GSTR-3B returns were filed for the month of December up to January 31, 2021.

The government has settled Rs 24,531 crore to CGST and Rs 19,371 crore to SGST from IGST as regular settlement.

The total revenue earned by Central Government and the State Governments after regular settlement in the month of January is Rs 46,454 crore for CGST and Rs 48,385 crore for the SGST.

Source: Economic-Times

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revenue collection from Goods and Services Tax (GST)
GST collection to be record Rs 1.20 lakh crore in January: SBI report

GST collection to be record Rs 1.20 lakh crore in January: SBI report

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After clocking record collections in December, the Goods and Service Tax (GST) revenue is expected to cross Rs 1.20 lakh crore in January 2021, indicating that government’s ongoing efforts are bearing fruit.

GST collections will be in the range of Rs 1.21-1.23 lakh crore and may still have an upside, says Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India.

Monthly GST collections have been showing higher year-on-year numbers since September 2020, indicating revival in the economy. It touched a record high of Rs 1.15 lakh crore, which was the highest ever collections since the implementation of the countrywide tax in July 2017. The previously record high of Rs 1,13,866 crore was reported in the month of April 2019.

“The Government’s ongoing efforts are bearing fruit in the form of GST collections. After clocking record collections in December 2020 month (Rs 1.15 lakh crore), our internal simulation model indicates that January 2021 GST collections will be in the range of Rs 1.21-1.23 lakh crore and may still have an upside. The positive trend which started from September 2020 has sustained and gained momentum,” according to SBI research report ‘Ecowrap’.

Considering the highest ever January numbers, if 50 per cent of the Integrated GST (IGST) collection is disbursed to states by March 21, then state GST shortfall can narrow down to only a minimal Rs 11,000 crore after taking into account the full compensation cess, the report noted.

If the central government keeps 60 per cent of the IGST revenue, then the states could be staring at a shortfall of around Rs 67,000 crore, it added.
The SGST (state GST) collection for states was 12 per cent lower at Rs 1.87 lakh crore in April-December 2020, as compared to the same period previous year, while the allocated IGST was 13 per cent lower at Rs 1.26 lakh crore.

Meanwhile the cess collection stood at Rs 60,312 crore, which was 17 per cent lower than last year. The combined amount of SGST, allocated IGST and cess stands at Rs 3.73 lakh crore, which was 13 per cent lower than last year’s collection in the same period and it was equal to 58 per cent of the states’ budgeted SGST which stood at Rs 6.49 lakh crore.

As per the report, the government has already borrowed Rs 11.46 lakh crore (as on January 22, 2021) this fiscal and the remaining gross borrowing of Rs 1.6 lakh crore is expected as per the calendar, thereby taking the total gross borrowing to Rs 13.03 lakh crore, lower than Rs 13.10 lakh crore earlier.

Meanwhile, the government surplus cash balances have increased significantly recently. The number has increased to Rs 3.34 lakh crore as on January 28, 2021 compared to Rs 1.08 lakh crore in September 2020, which indicates that the government is collecting huge amount of tax revenues which it is not able to spend.

“This in turn means that the government will have to borrow less next year than our earlier anticipated gross borrowing of Rs 11.5 lakh crore. Thus, the market perception of upward pressure on bond yield due to increased borrowing next fiscal or even this fiscal is not correct,” it said.

The SBI report suggested that the surplus cash balances can well be used to finance a sizeable portion of fiscal deficit in FY22 to keep interest rate increase in check and fasten the pace of recovery further.

As per the report, the other option is to also use a portion of cash balances to spend and pay back all outstanding dues of FY21, like outstanding SME payments from government departments, pending GST bills which in itself will usher in a big fiscal push in FY22. “Clearly, we could be in for a goldilocks period. The question is can we go for the jugular?” it said.

Source: businesstoday

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GST Compensation
Govt releases Rs 6000-cr 13th installment to states for GST shortfall compensation

Govt releases Rs 6000-cr 13th installment to states for GST shortfall compensation

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The Ministry of Finance released the 13th weekly instalment of Rs. 6,000 crore to the states on Monday, January 25, to meet the GST compensation shortfall.

Out of this, an amount of Rs 5,516.60 crore was released to 23 states and an amount of Rs 483.40 crore was released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

Till now, 70 percent of the total estimated GST compensation shortfall has been released to the states and UTs with Legislative Assembly. Out of this, an amount of Rs 71,099.56 crore has been released to the states and Rs 6,900.44 crore has been released to the 3 UTs with Legislative Assembly.
The Central government had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs. 1.10 lakh crore in revenue arising on account of implementation of GST.

The borrowings are being done through this window by the Central government on behalf of the states and UTs. So far 13 rounds of borrowings have been completed so far starting from October 23, 2020.

The amount released this week was the 13th instalment of such funds provided to the states. The amount has been borrowed this week at an interest rate of 5.30%. So far, an amount of Rs 78,000 crore has been borrowed by the Central government through the special borrowing window at an average interest rate of 4.7491%.

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the government also granted additional borrowing permission equivalent to 0.50 % of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources.

All the states have given their preference for Option-I. Permission for borrowing the entire additional amount of Rs. 1,06,830 crore (0.50 % of GSDP) has been granted to 28 states under this provision.

Source: ETNowNews

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GST collection
GST collection in December at all-time high with over Rs 1.15 lakh crore revenue

GST collection in December at all-time high with over Rs 1.15 lakh crore revenue

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The Goods and Services Tax (GST) collection in the month of December as the month saw the collection of over Rs 1.15 lakh crore, the finance ministry said on Friday.

December 2020 saw a record high of over Rs 1.15 lakh crore in the GST collection revenue. In fact, the revenues for the month of December 2020 are 12 per cent higher than the GST revenues in the same month in 2019. In November 2020, the GST collection had crossed Rs 1 lakh crore mark.

The highest jump in the GST collection was witnessed in Dadra and Nagar Haveli, with a growth of 68 per cent year on year, the collection during the month of December 2019 was Rs 154 crore and in 2020, it stood at Rs 259 crore.

Tripura saw the second-highest jump at 25 per cent year on year basis. The Central GST stands at Rs 21,365 crore and the state GST is at Rs 27,804 crore.

For the month of December, the integrated GST stood at Rs 57,426 crore (including Rs 27,050 crore collected on import of goods) and cess at 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 till December 31, 2020, is 87 lakh.

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 2020 is Rs 44,641 crore for CGST and Rs 45,485 crore for SGST.

The GST revenues during December 2020 have crossed Rs 1.15 lakh crore for the first time. The highest GST collection till now was Rs 1,13,866 crore in the month of April 2019. The December 2020 revenues are significantly higher than last month’s revenues of Rs 1,04.963 crore.

This is the highest growth in monthly revenues in the past 21 months. This has been due to the combined effects of the rapid economic recovery and the nationwide drive against the GST evaders and fake bills along with many systemic changes introduced recently, which have led to improved compliance.

Source: India-Today.

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gst-compensation
GST compensation shortfall: Centre disburses another Rs 6,000 crore to states

GST compensation shortfall: Centre disburses another Rs 6,000 crore to states

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The central government has released the sixth weekly instalment of Rs 6,000 crore to the states to meet the GST compensation shortfall, the government said on Wednesday. This amount has been borrowed at the interest rate of 4.2%.

The government has so far disbursed Rs 36,000 crore to states in back-to-back loan arrangement after borrowing the amount on behalf of states. The average interest rate for the borrowing under special window so far stood at 4.71%, the government said.

“Out of this, an amount of Rs 5,516.60 crore has been released to 23 states and an amount of Rs 483.40 crore has been released to the 3 union territories with legislative assembly (Delhi, Jammu & Kashmir and Puducherry) which are members of the GST Council,” the government said.

The government has calculated the GST compensation shortfall on account of implementation to be Rs 1.1 lakh crore this fiscal, an amount that would be paid to states by the end of FY 21 though borrowing as the designated cess fund is inadequate.

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the government has also granted additional borrowing permission equivalent to 0.5% of states’ GSDP to those choosing option-1 to meet GST compensation shortfall.

So far, permission for borrowing an additional amount of Rs 1,06,830 crore has been granted to 28 states under this provision, the government said.

Source: Financial-Express

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GST collection
Govt collects Rs 1,04,963 crore GST in November, crosses Rs 1 lakh crore mark second time since April

Govt collects Rs 1,04,963 crore GST in November, crosses Rs 1 lakh crore mark second time since April

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Goods and service tax (GST) collections for November stood at Rs 1.04 lakh crore, marginally lower than Rs 1.05 lakh crore collected in October this year, but higher than Rs 1.03 lakh crore collected in the same month last year.

The numbers showed the second consecutive month of collections clocking up more than Rs 1 lakh crore, indicating continued economic recovery, said experts.

“In line with the recent trend of recovery in the GST revenues, the revenues for the month of November 2020 are 1.4% higher than the GST revenues in the same month last year,” the finance ministry said in a statement Tuesday.

During the month, revenues from import of goods was 4.9% higher and the revenues from domestic transaction (including import of services) are 0.5% higher that the revenues from these sources during the same month last year, the ministry added.

“Second straight month of Rs 1 lakh plus collection is certainly indicative of continued economic recovery and the collections being slightly more same month last year is quite encouraging. This should also help in containing the shortfall of GST collections caused due to the pandemic,” said Abhishek Jain, tax partner.

Of the gross collections in November, Central GST stood at Rs 19,189 crore, State GST at Rs 25,540 crore, integrated GST at Rs 51,992 crore which included Rs 22,078 crore collected on import of goods, and cess was at Rs 8,242 crore, which included Rs 809 crore collected on import of goods.
The total number of GSTR-3B Returns filed for the month of November up to 30th November 2020 was 82 lakhs, the ministry added.

The government settled Rs 22,293 crore to CGST and Rs 16,286 crore to SGST from IGST as regular settlement. The total revenue earned by central government and the state governments after regular settlement in the month of November 2020 is Rs 41,482 crore for CGST and Rs 41,826 crore for the SGST.

A majority of states have shown an increase in GST collections, data from the ministry revealed, while nearly 15 states showing a dip in collections.

Source: Economic-Times.

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GST compensation
Centre to release second tranche of Rs 6,000 crore to states as part of GST compensation

Centre to release second tranche of Rs 6,000 crore to states as part of GST compensation

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The Centre will release the second tranche of Rs 6,000 crore to 16 states and 3 union territories on Monday, taking the total amount released to states to meet the compensation shortfall under goods and services tax (GST) under the special window to Rs 12,000 crore.

The second tranche was raised at a weighted average yield of 4.42 per cent, the finance ministry said in a statement.

“This amount will be passed on to the States/UTs at the same interest rate, which is lower than the cost of borrowings for the States and UTs, thus benefitting them,” the ministry said.

Till date 21 states and three union territories have opted for the special window under Option one where loans raised by the the government of India are released on a back-to-back basis to states or union territories, in lieu of GST compensation cess releases.

The loans have been released to Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, UT of Delhi, UT of Jammu and Kashmir and UT of Puducherry.

The government had given two borrowing options to states to meet the compensation shortfall for 2020-21, of which Rs 1.1 lakh crore option was chosen by 21 states and two union territories.

Under this option, the Centre agreed to borrow and provide to states while the principal and interest will be serviced from the compensation cess collected. The special borrowing window coordinated by the finance ministry allows for back to back borrowing by the Centre and further transfer to states.

Some opposition-led states and union territories, including West Bengal, Rajasthan, Kerala, Chhattisgarh and Puducherry had rejected both the borrowing options provided by the Centre – Rs 97,000 crore and Rs 2.35 lakh crore.

They are also yet to decide whether to take the increased borrowing option of Rs 1.1 lakh crore, enhanced from Rs 97,000 crore earlier, basis a 7 per cent growth projection in revenues versus 10 per cent growth projection estimated by the finance ministry.

Finance minister Nirmala Sitharaman had written to these states last month, asking them to rethink their decision and come on board with the other states that will get faster access to funds.

Finance secretary Ajay Bhushan Pandey told ET in an interview that the government was open to discussion with states and will try to bring them on board.

“On revenue loss and other aspects, one can have discussions. I’m sure other states will also review their positions. We will try to convince them,” Pandey said.

Source: Economic-Times.

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