The COVID-19 pandemic has hit Goods and Services Tax (GST) collections, with India so far this financial year achieving only less than half the revised full-year target. The Central government has collected only 47 per cent of the revised full-year target of Rs 6.90 lakh crore GST collections. It may be noted that the annual GST figures in the Budget document include only the Centre’s share and the Integrated GST component. It was estimated that out of the total tax collections under GST, 84 per cent will come from central GST (Rs 5.80 lakh crore), and 16 per cent (Rs 1.10 lakh crore) from the GST compensation cess.
GST FY21 target cut by 25%
According to Union Budget 2021, the government has revised down its estimates by 25 per cent to Rs 5.15 lakh crore from Rs 6.91 lakh crore for the current fiscal. Realisation from Central GST (CGST) — the main component of the GST collections in the Budget 2021 — was lowered to Rs 4.31 lakh crore from the earlier estimate of Rs 5.8 lakh crore. GST compensation cess was lowered to 84,100 crore from the 1.10 lakh crore earlier.
GST revenues fall 52.8% short in FY21 YTD against revised target
So far, Rs 2.43 lakh crore have been collected (CGST + GST compensation cess), which is Rs 2.72 lakh crore or 52.81 per cent less from the total target of 5.15 lakh crore for the current fiscal.
As against the revised target of Rs 4.31 lakh crore, so far this fiscal CGST collection stands at Rs 1.71 lakh crore.
The total GST cess so far this fiscal stood at Rs 72,248 crore, as against the revised estimates of Rs 84,100 crore.
Gross GST revenue FY21 YTD nears FY20 collection
Shrugging off the disruption caused during the initial months of the current fiscal due to COVID-19-induced lockdown, the government has collected total gross GST revenue of Rs 10.12 lakh crore during April 2020-February 2021, as against a total gross GST collection of Rs 12.22 lakh crore crore in 2019-20. During the lockdown months of April and May 2020, GST revenue had tumbled over 50 per cent on-year.
On the back of economic recovery and unlock phase, the GST collections have been rising since September-2020. Since October 2020, GST revenue figures have held above the one lakh crore mark per month. In February 2021, the monthly GST revenue topped Rs 1 lakh-crore mark fifth time in a row. The revenues for the month of February 2021 were 7 per cent higher than the GST revenues in the same month last year. GST collection stood at Rs 1.05 lakh crore in February 2020. This gross GST revenue comprises Central GST, State GST, Integrated GST and Cess.
Govt eyes Rs 6.3 lakh crore collection in FY22
For the next fiscal 2021-22, the government has estimated the target of Rs 6.3 lakh crore, which is 22.3 per cent or Rs 1.14 lakh crore more of its revised estimate for the current fiscal.