GST Collection Rebounds ₹1.16 Lakh Crore In July
- ByAyushi Ray | August 2, 2021
The Goods and Service Tax, GST collection rebounds ₹1.16 lakh crore in July, which is about a 33% year-on-year jump, signifying the easing impact of the second wave of the Covid-19 pandemic on the economy which saw the revenue plunge below ₹1 lakh crore in the previous month for the first time since October 2020. The GST revenue in July this year, which indicates the actual volume of business transactions in June, is also about 14% up compared to ₹1.02 lakh crore collected in July 2019, pointing at rapid economic recovery after the second wave that raged in the months of April and May, according to official data. The GST collections, after posting above ₹1 lakh crore for eight months in a row, dropped below ₹1 lakh crore in June 2021 as the collection in the month was predominantly related to business that took place in the month of May 2021, when most of the states and Union territories (UTs) were under complete or partial lockdown due to the pandemic, the finance ministry said.
“With the easing out of Covid restrictions, GST collection for July 2021 has again crossed ₹1 lakh crore, which clearly indicates that the economy is recovering at a fast pace. The robust GST revenues are likely to continue in the coming months too,” it said in a statement. The International Monetary Fund (IMF) last week slashed India’s growth forecast for FY-22 to 9.5% from 12.5% projected in April, citing the severe second wave of the pandemic, and expected slow recovery in business confidence. Most of the professional forecasters also reduced their growth projections for India. Last month, global rating agency S&P lowered India’s GDP growth forecast to 9.5% in the current fiscal year compared to its prediction of 11% in March, which was just before the second wave.
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