GST kitty hits new monthly record, tops ₹1.42L crore in March – Times of India

NEW DELHI: GST collections throughout March hit a brand new month-to-month document, topping Rs 1. 42 lakh crore, pushed by a pointy rise in collections on imports. “The revenues for the month of March 2022 are15% greater than the GST revenues in the identical month final 12 months and 46% greater than the GST revenues in March 2020.
Throughout the month, revenues from import of products was 25% greater and revenues from home transaction (together with import of providers) are 11% greater than revenues from these sources throughout the identical month final 12 months,” the finance ministry mentioned in an announcement. Throughout 2021-22, annual development was estimated to have grown 30. 5%, which got here on the again of a 7% decline within the earlier 12 months on account of the nationwide lockdown and the affect of Covid-19 on general financial exercise.

“The most recent highest ever tax collections recorded in GST, clearly point out the expansion potential of the home market and mirror on sturdy fundamentals of the Indian financial system. Whereas a few of these excessive collections are attributable to the stringent measures adopted by regulatory businesses to strengthen compliance, due credit score must also be given to rising consumption urge for food of the home market,” mentioned Saurabh Agarwal, tax accomplice at EY India. Authorities sources mentioned that regardless of the spectacular development in current months, there was a case to rationalise the tax construction, one thing that’s being mentioned by a bunch of ministers.
“Larger GST collections, along with customs obligation (rebound in gold imports in February 2022 submit third wave) in addition to direct taxes are prone to have pushed up the gross tax revenues of the GoI properly above the FY2022 revised estimates. Based mostly on the extra tax devolved to the states in FebruaryMarch 2022 (excluding arrears pertaining to earlier years), we’ve got assessed that the gross tax revenues of the GoI seemingly overshot the RE of Rs 27. 6 lakh crore by a substantial Rs 2. 25 lakh crore,” ICRA chief economist Aditi Nayar mentioned.

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