Mumbai: The GST collection declined 28% month on month (MoM) in May at Rs 1,02,709 crore compared to Rs 1,41,384 crore in April. Even though it is the eighth month in a row that GST revenues have crossed Rs 1 lakh crore, it is also the lowest collection in 8 months. The dip in the GST collection was attributed to the economic slowdown and the coronavirus-induced lockdown. Economists say the GST collection in June is expected to be bad but it may improve from July.
According to the finance ministry, of the Rs 1,02,709 crore, CGST is Rs 17,592 crore, SGST is Rs 22,653, IGST is Rs 53,199 crore (including Rs 26,002 crore collected on import of goods) and Cess is Rs 9,265 crore (including Rs 868 crore collected on import of goods).
The Rs 1,02,709 crore includes GST collection from domestic transactions till June 4 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 of May’21 in the wake of Covid pandemic second wave. During this month the government has settled Rs 15,014 crore to CGST and Rs 11,653 crore to SGST from IGST as regular settlement.
The finance ministry in a statement said that the revenues for the month of May 2021 are 65% higher than the GST revenues in the same month last year. During the month, revenues from import of goods were 56% higher and the revenues from domestic transactions (including import of services) were 69% higher than the revenues from these sources during the same month last year.
In addition, while the taxpayers with turnover above Rs 5 crore had to file their returns by 4th June, which they would have otherwise filed by 20th May, smaller taxpayers with turnover less than Rs 5 crore still have time till the first week of July to file the returns without any late fee and interest and the revenue from these taxpayers is deferred till then. The actual revenues for the month of May 2021, thus would be higher and would be known when all the extended dates expire.