Monthly GST receipts of March month is the highest ever since the introduction of Goods and Service Tax (GST). The value reached Rs 1.23 trillion and in the previous month (February), it was Rs 1.13 trillion, this clearly shows the rise of GST receipt to 10,000 crores. Of Rs 1.23 trillion (1.23 lakh crore), the centre contribution, i.e., CGST was Rs 22,973 crore whereas SGST was Rs 29,329 crore. In this article, we will discuss Monthly GST Receipts Set To Be Highest In March.
Last year, the economy was worse because of the lockdown due to the pandemic, as a result, GST receipts significantly fell and in the first quarter, it was -41%. But in the second quarter, there was an improvement and GST growth was -8%. However, the rise took place in the third and fourth quarter and the growth rate was 8% and 14% respectively. Even many more new businesses went through GST Registration and the same also helps in the improvement of GST status.
Comparing the same month with last year, the monthly GST receipt of March has been given an economic growth of up to 27% higher. The prime sources that result in the hike in monthly GST receipts were the imported goods and domestic transactions. The former (imported goods) increased to 70% and latter to 17% compared to the previous year of the same month.
The reason behind the rise of monthly GST receipt in March
The prime reason behind the rise of the GST recipt is the transparency of economic activities and Government action against fake invoices. The concerned authorities examined the tax credit reports of previous months and found many businesses failed to provide the transaction details.
Even many Chartered Accountants released fake invoices that hampered the GST collection. Since then many business owners went through the GST return filing process to avoid any tax-related issues.
The clash between Centre and States over GST Compensation
Earlier in Financial Year 2021, a clash was noticed between Centre and States due to the GST compensation. But with the increase of GST receipt, the Government has cleared the due in the form of Rs 21879 crore to CGST, Rs 17230 crore to SGST. Moreover, the Government has cleared Rs 28,000 crore as IGST ad-hoc settlement.
Download E-Startup Mobile App and Never miss the freshest updates narrating to your business.