GST revenue receipts at record high ₹1.2 trillion in January

An official assertion from the finance ministry mentioned that after settlement of income from inter-state transactions, central authorities obtained ₹46,454 crore and states collectively obtained ₹48,385 crores.

The statement mentioned this was in line with the trend of financial recovery over the past five months and showed an 8% enchancment over the receipts in the same month last year.

“GST revenue during January 2021 is the highest since introduction of GST and has almost touched the ₹1.2 trillion mark, exceeding the last month’s record collection of ₹1.15 trillion. GST revenues above ₹one trillion for a stretch of last 4 months and a steep increasing development over this period are clear indicators of rapid economic recovery post the pandemic,” the statement mentioned.

Closer monitoring against fake-invoicing, information analytics using information from numerous agencies handling GST, income-tax and customs and effective tax administration contributed to the steady enhance in GST collections, the statement mentioned.

“It is by such systemic changes, the department has now been able to take targeted actions against fraudsters and tax evaders without any overreach,” mentioned a government official, who spoke on condition of anonymity.

To this point this month, nine million monthly tax returns had been filed. Throughout the month, income from import of goods was 16% higher from the same time a year ago.

GST receipts staging a restoration after a steep drop in April when the nation was in a nationwide lockdown presents reduction to coverage makers hoping to bridge the income shortfall within the early a part of this fiscal with sturdy compliance enforcement drive in latest months.

As a part of the government’s drive against fake bill rackets, 274 arrests have been made since mid-November, of which eight people are chartered accountants and one person is an organization secretary, mentioned the official quoted above. As a part of the drive, more than 2700 cases have been booked against around 8500 entities. GST authorities have been able to identify those dealing in fake invoices and those utilizing this for tax evasion with precision, the official added.

Experts mentioned that policy measures similar to monitoring of use of tax credits for tax payment too contributed to the revenue development.

“The surge in GST collections observed during the past four months is expected to be sustained within the coming months of the current fiscal with more of service sector activities like aviation, hospitality, entertainment and many others opening up throughout states since January 21,” mentioned MS Mani, Senior Director at Deloitte India.