According to a report published by SBI ahead of the official GST revenue data release on May 1, the GST collection April 2021 figure is likely to hover around ₹1.15 lakh crore to ₹1.2 lakh crore. It is good news, considering the country has been in a continuous state of multiple lockdowns. In this article we will discuss on GST Collection April 2021.
What is GST?
GST, as we all know, stands for Good and Services Tax. It came into effect in July 2017 and brought various indirect taxes such as service tax, excise duty, VAT, etc., under one roof. It has helped eliminate the cascading effect of these indirect taxes on the prices of goods and services and ensured that manufacturers could pass on the savings as benefits to the end-users.
GST Registration and GST Return Filing
GST Registration is the process followed to get a taxpayer/business registered under the GST laws. After the GST registration process is successful, the Central government assigns a unique 15-digit Goods and Services Tax Identification Number (GSTIN) to the taxpayer/business. Once you obtain a GST registration, GST return filing becomes mandatory. Even if a business does not make a single transaction, it must file a ‘Nil’ GST return. Late GST return filing can attract heavy fines and penalties in addition to other consequences.
GST collection April 2021
According to a report published by SBI ahead of the official GST revenue data release on May 1, the GST collection April 2021 figure is likely to hover around ₹1.15 lakh crore to ₹1.2 lakh crore. It is good news, considering the country has been in a continuous state of multiple lockdowns.
It is essential to note that the country has registered GST collections of more than ₹1 lakh crore per month in the last six months, with a record ₹1.24 lakh crore in March 2021.
The SBI research report Ecowrap observed that after registering record collections in March 2021, their internal simulation model expects the GST collection April 2021 figures to range between ₹1.15 – ₹1.2 lakh crore. The report stated that the achievement assumes more significance, given that most states are still reeling under partial lockdowns and curfews.
The report also observed that all India GST e-way bill figures stood at 4.89 crores till April 25 and are expected to cross the 5.5 crore mark for the whole month comfortably.
The Reasons Behind Steady GST Collections
The report indicates that the increase in GST collections is a clear indicator that the country is moving towards rapid economic recovery after the nationwide lockdown was lifted. Besides, other factors such as close monitoring of fake bills, deep data analysis using tax data from multiple sources such as Customs, GST, IT, and efficient tax management procedures have also contributed to the increase.
The report suggested that disruptions in GST collections, if any, will only be passing. It said that states would enjoy comfortable and steady SGST collections. It observed that a look at the last year’s trend around SGST collection, allocation of IGST to states, and cess amount, reveals that the SGST collection was around 89% of the budgeted ₹6.5 lakh crore. So, even if a 50:50 distribution was to occur, states will only be short by roughly ₹6,000 crores.
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