Business

GST collection rose 7% in Feb. to ₹1.13 lakh cr.

Gross GST collections in February grew 7% year-on-year to ₹1.13 lakh crore, marking the third consecutive month of the collections crossing ₹1.1 lakh crore.

Revenues from goods imports grew 15% in the month and revenues from domestic transactions (including import of services) expanded 5% over February 2020, the Finance Ministry said.

Terming the improved collections ‘a clear indication of the economic recovery and the impact of various measures taken by tax administration to improve compliance’, the Ministry pointed out that GST revenues had crossed ₹1 lakh crore ‘fifth time in a row post pandemic’.

Among the major States, Odisha saw the highest surge in GST revenues of 20% in February, followed by 14% in Gujarat, 12% in Jharkhand, 10% in West Bengal and Rajasthan, and Tamil Nadu recording a 9% growth.

“While the growth of GST collections eased mildly, it remained healthy and in line with the consolidation in the momentum of economic activity observed across a variety of lead indicators. A favourable base effect is likely to result in the CGST collections expanding by 18-23% in March 2021,” said Aditi Nayar, principal economist at ICRA Ltd.

The data indicates a sharp recovery from the lows seen at the peak of the pandemic, said Abhishek Jain, tax partner at EY, adding that tightening compliance and anti-evasion measures have also helped.

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Printable version | Apr 12, 2021 7:32:56 AM | https://www.thehindu.com/business/gst-collection-rose-7-in-feb-to-113-lakh-cr/article33965797.ece

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