~ by Trinanjan Chakraborty
The GST collections in October’20 crossed Rs. 1 lakh crore mark – the highest in the current fiscal – indicating a sign of recovery in economic activities as per officials of the Department of Revenue. It is also the first time that the GST collections have crossed the 1 lakh crore mark since Feb’20, i.e. touching pre-Covid levels. The figure is also 10% higher than the collections in corresponding period last year, which stood at Rs 95, 379 crores. Revenues from import of goods was 9% higher while the same from domestic transactions (including import of services) was 11% higher as compared to Oct’19.
In the months of July, August & September, the GST collections had shown a negative growth of -14%, -8% and -5% vis-à-vis corresponding periods a year back. The GST collection amount had shown a growth trajectory in September as well, in line with greater relaxation on economic activities.
The gross GST collection in October comprised of: CGST – Rs. 19, 193 crore, SGST – Rs. 25, 411 crore, IGST – Rs. 52, 540 crore and Cess – Rs. 8011 crore. The total revenue earned by central and state governments after regular settlement in the month of October is Rs. 44, 285 crore (central) and Rs. 44, 839 crore (states).
With the festive season ongoing in the country, it is expected that the positive trajectory in GST collections will continue in November as well. Experts are cautiously optimistic, indicating that lasting of the growth pattern beyond November (when the traditional festive season ends) will give a definite answer to the question of economic recovery.