A massive GST Collection in the month of July. Statistics mention that the figure is a three-month high in July. Interestingly, the figure is above trillion and the experts estimate that the reason is the opening up of lockdown and ease of mobility restrictions. In this article, we will read about GST Collections in July rose to 1.16 trillion.
GST Collections in July rise to 1.16 trillion
With the relaxation of mobility limitations, the central and state governments collected 1.16 trillion in goods and services tax (GST) in July.
In a statement, India’s finance ministry states that this amount represents money collected from July 1 through July 31. However, Some of the revenue collected in the first five days of June month was also included in July numbers, due to interest relief for delayed payments.
As a result of the second wave of Covid-19, taxpayers with an aggregated turnover of up to Rs 5 crore were eligible for interest waivers or reductions.
States and Centre’s GST Collection
In July, the Centre collected 50,284 crores, and the states collected 52,641 crores, according to the latest figures available. According to the government, July’s revenues were 33 per cent more than they were a year earlier. As a result, Maharashtra’s mop-up grew by 51 per cent year-over-year. On the other hand, Tamil Nadu’s jumped by 36 per cent in July. Jharkhand and Odisha, both resource-rich states, had 54 per cent growth.
Finance Ministry’s Statement on reaching 1 trillion mark
GST collections fell below the 1 trillion thresholds in June, after remaining above it for eight straight months since October. The finance ministry stated in a statement that transactions in May, when most states and union territories were under lockdown, accounted for the majority of revenue in June.
‘GST collection for July 2021 has again surpassed 1 trillion,’ according to the government. Thus, experts estimate GST collections will remain strong in the coming months, according to government officials.
Furthermore, Import income was up 36% and domestic transactions (including services) were up 32% on a year-over-year basis.
In conclusion, the government’s GST collection is strong. The reason is it has strengthened its enforcement. The enforcement is through closer monitoring of false billing, deep data analytics, and efficient tax administration.
The ease of fulfilling compliance and introducing new functionalities such as – New functionality on Annual Aggregate Turnover and New functionalities to be deployed on GST Portal from July, 2021 also promoted the GST Return Filing.
If you want any other guidance related to GST Registration or GST Return Filing, please feel free to talk to our business advisors at 8881-069-069.
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