NEW DELHI: Recovery in the Goods and Services Tax (GST) continues, with collections for February crossing the Rs 1 lakh crore mark for the fifth straight month. Data released by the finance ministry on Monday showed that collections stood at Rs 1.13 lakh crore, an increase of over seven per cent when compared with the same month last year.
"In line with the trend of recovery in the GST revenues over the past five months, the revenues for the month of February 2021 are 7 per cent higher than the GST revenues in the same month last year," the government said.
Of the total gross collections, Central GST was Rs 21,092 crore, State GST was Rs 27,273 crore, Integrated GST was Rs 55,253 crore (including Rs 24,382 crore collected on import of goods) and compensation cess was Rs 9,525 crore (including Rs 660 crore collected on import of goods).
Besides, the government has settled Rs 22,398 crore to CGST and Rs 17,534 crore to SGST from IGST as regular settlement. "While the growth of GST collections eased mildly in February 2021, it remained healthy, in line with the consolidation in the momentum of economic activity observed across a variety of lead indicators," said Aditi Nayar, Principal Economist with ICRA Ltd.
In addition, the Centre has also settled Rs 48,000 crore as IGST ad-hoc settlement in the ratio of 50:50 between the Centre, states and union territories. Revenue for the Centre and states, after regular and ad-hoc settlement, came in at Rs 67,490 crore for CGST and Rs 68,807 crore for the SGST.
"A favourable base effect is likely to result in the CGST collections expanding by 18-23 per cent in March 2021. However, the settlement of IGST between the Centre and the states, will adversely impact the revenues of the Centre, resulting in a moderation in the growth of its gross and net tax revenues in that month," Nayar added.
During the month, revenues from import of goods was 15 per cent higher and the revenues from domestic transactions (including import of services) were five per cent higher year-on-year. "This is a clear indication of the economic recovery," the government said.