For one more time, GST collections have increased Rs 1 lakh crore mark for the fifth month in a row in February, rising 7 per cent yearly to over Rs 1.13 lakh crore, symbolising economic recovery, the finance ministry stated. In this article, we will discuss the GST collection in February 2021.
GST Collection February 2021
This is the fifth time GST return filing have crossed the monthly Goods and Services Tax (GST) collection increases Rs 1 lakh crore mark for the fifth time in a row in February. GST collection grows 7 per cent year-on-year to Rs 1.13 lakh crore in the month.
Also, with the trend of improvement in the GST revenues over the past five months, the revenues for February 2021 are 7 per cent higher than the GST revenues in the same month last year, the Finance Ministry stated.
Of the Rs 1.13 lakh crore obtained in February, Rs 21,092 crore was Central GST (CGST), Rs 27,273 crore as State GST (SGST) and Rs 55,253 crore as Integrated GST (IGST). The amount collected through cess stood at Rs 9,525 crore, covering Rs 660 crore collected on import of goods.
Further Notification for Taxpayers
Further, the monthly GST collection passed Rs 1 lakh crore mark for the fifth time in a row and Rs 1.1 lakh crore mark for the third straight month. This is a definite indication of the economic recovery and the impact of several measures taken by tax policy to improve compliance.
The government has settled Rs 22,398 crore to CGST and Rs 17,534 crore to SGST from IGST as a regular settlement. The Central government has also compensated Rs 48,000 crore as IGST ad-hoc settlement in the ratio of 50:50 within Centre, states and union territories.
While the growth of GST collections raised mildly in February 2021, it remained salutary, in line with the consolidation in the momentum of economic activity perceived across a variety of lead indicators. Subsequently, a positive base effect is likely to result in the CGST collections increasing by 18-23 per cent in March 2021.
However, the settlement of IGST of Rs 48,000 crore between the Centre and the states, will negatively affect the net revenue (CGST+IGST) of the market in February 2021, following in moderation in the extension of its gross and net tax revenues in that month.
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