GST Collections set a record as collections stood at above Rs. 1.12 trillion-mark. The GST collection in August has crossed the crucial mark and the collections are 30 percent higher than the collection in the year-ago period. In this article, let’s discuss the latest update by the Ministry of Finance on GST Collection in August.
GST Collection in August 2021
The gross GST revenue collected in the month of August 2021 is Rs. 1,12,020 crore of which CGST is Rs. 20,522 crores, SGST is Rs. 26,605 crores, IGST is Rs. 56,247 crores (including Rs. 26,884 crores collected on import of goods) and Cess is Rs. 8,646 crores (including Rs. 646 crores collected on import of goods).
The Ministry revealed these important facts and figures on the GST Revenue collection for August 2021- Official Notification.
The central government also states that The robust GST revenues are likely to continue in the coming months too.
Ministry on Reaching Rs. 1.12 Trillion-Mark in GST Collection for August
After posting over the mark for 9 months in a row, the GST collection falls below that for a second wave of covid in June 2021, following the posting of above the 1 lakh crore barrier.
“The GST collection for July and Aug. 2021 has again reached a level of 1.0 lakh crore by relaxing COVID limitations which clearly shows that the economy is rebounding at an accelerated pace. Alongside economic development, the Ministry also contributed to improved GST revenues via anti-evasion operations, and notably action against false billers,” the Ministry stated.
After a nine-month streak of GST collections exceeding Rs. 1 lakh crore, the second wave covid saw Goods and Services Tax collection drop below Rs. 1 lakh crore in June 2021. “With the removal of COVID restrictions, the GST collection for July 2021 and August 2021 has again exceeded Rs. 1 lakh crore. ” Thus, This clearly shows that the economy is regaining at a rapid pace.
The ministry also stated that in addition to economic growth, anti-evasion actions, particularly action against fake billers, have contributed to increased GST collections.
GST Collection in August 2021 vs GST Collection in August 2020
The month of August 2021 shows GST Collection as 30% more compared to the Goods and Services Tax revenues in the exact same month last year i.e. August 2020.
Moreover, The revenues from domestic transactions (including imports of services) were 27% more than those from the same month last year. Similarly, This year’s growth is more compared to August’s revenues of Rs 98,202 crore in 2019-20.
Net Settlements of CGST, SGST, and IGST
As a regular settlement, the government has settled Rs 23,043 crore to CGST, and Rs 19,139 crore to SGST. The ministry said that Rs 24,000 crore is now settled by the Centre as an IGST ad hoc settlement. This was in a 50/50 ratio between Centre and States/UTs.
Lastly, After regular and ad-hoc settlements, the total revenue for the Centre and the States in August 2021 was Rs55,565 crore (CGST) and Rs57,744 crore (SGST).
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