GST collection grows to over Rs1.33 lakh cr in Feb
New Delhi, March 1
The GST collection in February grew 18% to over Rs 1.33 lakh crore in February even as the Omicron wave dented the month-on-month collection momentum. This is for the fifth time in the current fiscal that the Goods and Services Tax (GST) collection has crossed Rs 1.30 lakh crore-mark. Also, this is the first time, cess collection has crossed the Rs 10,000 crore-mark, signifying recovery in certain key sectors, especially automobile sales, the Finance Ministry said on Tuesday.
However, gross sales tax collection was lower than the record Rs 1.41 lakh-crore netted in January which the government attributed to the impact of the Omicron wave and three fewer days in February. “This high growth should also be seen in the context of partial lockdowns, weekend and night curfews and various restrictions that were put in place by various states due to the omicron wave, which peaked around January 20,” said the official statement.
But analysts said GST collection would have been lower but for restrictions on availing input tax credit (ITC). “From January 1, Section 16(2)(aa) has come into effect whereby if the supplier makes a mistake in filing its GST Return, the buyer is not able to take the ITC. Also, other new restrictions have been implemented or are on the verge of being implemented, in availment of ITC by buyers. These seem to be the main reason for continuing robust GST collection,” reasoned Vivek Jalan of Tax Connect Advisory.
Deloitte India Partner MS Mani said the trend of collection indicates they are now on a stable trajectory and the fiscal ’22 targets would be exceeded. However, he pointed out there is significant divergence among states with increases in the range of 2 to 23% among the large states.
Cess breaches Rs10,000 crore-mark
- This is for the fifth time in the current fiscal that the GST collection has crossed Rs1.30 lakh crore-mark
- Also, this is the first time, cess collection has crossed the Rs10,000 crore-mark, signifying recovery in certain key sectors, especially automobile sales
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