July GST collection rises 33 pc year-on-year to Rs 1.16 lakh cr, signals pick-up in recovery

New Delhi, Aug 1 (FN Bureau) Signalling pick-up in economic activities after a dip during second wave of Coronavirus pandemic, the goods and services tax (GST) collection jumped 33 per cent in the month of July, 2021 to Rs 1,16,393 crore as compared to the corresponding month a year ago. After remaining above Rs 1 lakh crore for eight months in a row, GST collection had dropped below Rs 1 lakh crore in June 2021 as the collections during the month of June 2021 as most of the states were under either complete or partial lock down due to rising Covid infections.

The Finance Ministry in a statement said that the rise in GST collections indicate that the economy is recovering at a fast pace. “The robust GST revenues are likely to continue in the coming months too,” it said. As per monthly data released by the government, out of total gross GST revenue collected in the month of July 2021, CGST is Rs 22,197 crore, SGST is Rs 28,541 crore, IGST is Rs 57,864 crore (including Rs 27,900 crore collected on import of goods) and cess is Rs 7,790 crore (including Rs 815 crore collected on import of goods). M.S Mani, Senior Director, Deloitte India said that the sharp increase in the collections for June 21 indicates the resumption of economic activities in June and will raise expectations of better collections in the coming months.

“The improvement in GST collections both on domestic transactions and imports, accompanied by the fact that major producing states have shown significant increases, would indicate that the economic activities have resumed across the country,” he said.