India is paying taxes: third-month GST revenues surpass 1 lakh crore.
Key points:
- Goods and Services Tax (GST) collections in December are predicted to surpassed Rs 1 lakh crore for the third straight month.
- Essential economic indicators point to a sustainable recovery. Compared to the previous year, the GDP figures.
- According to the current festive and holiday season, GST collections for December 2020 are expected to remain stable.
Goods and Services Tax (GST) stores in December are predicted to surpass Rs 1 lakh crore for the third straight month, signifying a successful economic activity transition.
Since March, consuming tax revenue has been on an upward trajectory because of the Covid-19 pandemic and the 68-day national hard lockdown after remaining in the contraction phase for six months in a line.
Finance ministry to release GST details on Friday:
GST collections look fine, leading to available data so far, with enhanced customer demand during the festive season, confirmed two officials with direct knowledge of the matter, asking for anonymity. On Friday, the finance ministry will publish GST revenue details.
As one of the officials stated:
Also, essential economic indicators point to a sustainable recovery. Compared to the previous year, the GDP (gross domestic product) figures for the second quarter are very promising.
This change will be reflected in the revenues from GST,” said one of the officials.
As chief policy advisor of EY India DK Srivastava stated:
“DK Srivastava, the chief policy advisor of EY India, said, “The high-frequency indicators have shown a gradual but sustained turnaround.” In the second quarter of 2020-21, India’s GDP reduction moderated sharply to 7.5 per cent compared to 23.9 per cent in the previous quarter.
The Manufacturing Purchasing Managers’ Index (PMI) continued to rise at 56.3 in November, compared with 53.7 for PMI services. For PMI, an index of over 50 implies expansion.
Reflecting the trend, from September, GST collections have already shown positive growth. Though GST revenue could not surpass the Rs 1 lakh crore threshold in September, it still saw a 4 per cent growth that month to Rs 95,480 crore comparing to a year ago.
In October, revenue collections saw a remarkable rise of 10 per cent year on year to Rs 1,05,155 crore and collections also saw a 1.4 per cent rise year-on-year to Rs 1,04,963 crore during November.
As Rajesh Gupta co-founder and director of accounting software company Busy Infotech stated:
Rajesh Gupta, co-founder, and director of accounting software company Busy Infotech expects to surpass the November amount of Rs 1,04,963 crore for GST collection in December.
But he recommended that, after the festive season, demand could decrease. Government steps should be taken in advance to help companies during the festive season because it will be a real struggle to manage the sales in February as well as March,” he said.”
Archita Gupta founder and CEO of ClearTax financial technology platform, stated:
Archit Gupta, founder and chief executive officer (CEO) of the ClearTax financial technology platform, said, “According to the current festive and holiday season, GST collections for December 2020 are expected to remain stable at current levels.”
Also, numbers will continue to scale as of October 2020 with the introduction of the e-invoicing method. The scheme eliminates the possibility of false invoicing and (fake) input tax credit to a greater degree.
Further, Archita Gupta Stated:
Gupta continued that a backlog might also benefit from the December figure. “To some level, tax payments through Form DRC-03 may contribute to the revenue coffers when filing GST annual returns for FY 2018-19 & FY 2019-20, due by 31 December,” he added.
Type DRC-03 is a digital implication of the payment made voluntarily by the taxpayer either towards a notice given by the authorities showing cause.
