Collections spanning from June 5 to July 5 due to compliance deadline relaxations, show the impact of lockdowns by various states amid the second Covid wave, breaking the eight-month streak of revenues crossing Rs 1 lakh crore.
“The GST collection for June’2021 is related to the business transactions made during May’2021. During which most of the States/UTs were under either complete or partial lock down due to Covid,” the finance ministry said in a statement Tuesday.
The revenues for the month of June 2021 are 2% higher than the GST revenues in the same month last year. The e-way bill data for the month of May 2021 showed 39.9 million e-way bills were generated as compared to 58.8 million in April 2021, down by more than 30%.
The government said July revenues are expected to be better.
“It is expected that while the GST revenues have dipped during the month of June, the revenues will see an increase again from July 2021 onwards,” the ministry said.
It pointed to reduction in Covid caseload, easing of lockdowns and 55 million e-way bills generated during June 2021, indicating recovery of trade and business.
The daily average generation of e-way bill for the first two weeks of April 2021 was 2 million, which came down to 1.6 million in last week of April 2021 and further to 1.2 million in the two weeks between May 9 and 22.
Thereafter, the average generation of e-way bills has been increasing and has reached again to 2 million level since week beginning June 20, the ministry said.
Experts said the numbers were on expected lines as business activity was hit due to pandemic and restrictions.
“Considering the fact that it relates to transactions in May 2021 which was badly impacted by the pandemic, it would be considered as a very satisfactory collection. These numbers also reflect the economic resilience shown during the recent pandemic phase,” said M.S Mani, senior director at Deloitte India.
“Considering the fact that it relates to transactions in May 2021 which was badly impacted by the pandemic, it would be considered as a very satisfactory collection. These numbers also reflect the economic resilience shown during the recent pandemic phase”
Rajat Bose, partner at Shardul Amarchand Mangaldas & Co said, “Given that the 2nd wave is behind us, we should see a rebound in the collection figures for the coming months.”
The gross GST revenue collected in the month of June’ 2021 is Rs 92,849 crore of which CGST is Rs 16,424 crore, SGST is Rs 20,397, IGST is Rs 49,079 crore (including Rs 25,762 crore collected on import of goods) and Cess is Rs 6,949 crore (including Rs 809 crore collected on import of goods).
The figure includes GST collection from domestic transactions between 5thJune to 5th July’2021 since taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month June’ 21 for the taxpayers with the aggregate turnover upto Rs. 5 crore in the wake of covid pandemic second wave.
During this month the government has settled ₹ 19,286 crore to CGST and ₹ 16,939 crore to SGST from IGST as regular settlement.