Key points:
- An economical health barometer, are predicted to reach Rs 1 lakh crore in October for the very first time in eight months.
- The economic activity gained more traction and the festive season gave a fillip to household consumption.
- Great news for the government, which is borrowing Rs 1.1 lakh crore to reimburse states for their share of GST revenue.
- For the very first time since March in September, tax collections recovered with a moderate Rs 95,480 crore rise of 4 per cent y-o-y.
According to two officials with actual knowledge of the situation, Goods and Services Tax (GST) collections, and economic health barometer, are predicted to reach Rs 1 lakh crore in October for the very first time in eight months since the coronavirus disease (Covid-19) pandemic struck India and prompted a national lockdown.
As per the Data:
Available data indicate that as more companies emerged from the lockdown, economic activity gained more traction, and the festive season gave a fillip to household consumption, GST revenue payables in the month were robust, officials said on behalf of anonymity.
According to the first Official stated:
The indirect tax collection in October, going through the filing of GST returns, “maybe in reach of Rs 1 lakh crore,” one of the officials stated.
This includes reports filed on GST Form 3B (GSTR-3B), a monthly overview of transactions made by taxpayers by 20 October, the last date for the previous month’s GST returns.
By October 20, more than 1.1 million GSTR-3B returns were already filed, compared to 485,000 on the very same day last year, the first Official stated.
Good News for the Government:
That’s excellent news for the government, which is borrowing Rs 1.1 lakh crore to reimburse states for their share of GST revenue for a portion of the expected Rs 2.35 lakh deficiency this financial year.
Beginning on March 25, the Covid-19 disease outbreak imposed a 68-day hard lockdown that forced the temporary shutdown of manufacturers and service providers in all but those sectors that were deemed necessary.
These have been loosened slowly.
For the very first time since March in September, tax collections recovered with a moderate Rs 95,480 crore rise of 4 per cent y-o-y.
Due to improved compliance systems such as e-invoicing and using AI to monitor tax leakage, the second Official cited above-said tax collections are also expected to increase.
On October 1, the government launched the e-invoicing system for companies with an annual turnover of more than Rs 500 crore per year; by January 1, the threshold of turnover could be lowered to Rs 100 crore.
