August GST Collections Drops To Rs. 1.12 Lakh Crore

The Finance Ministry has declared, in August gross Goods and Services Tax (GST) revenue has drooped to Rs. 1.12 lakh crore from Rs. 1.16 lakh crore in July. Among this total collection, Central GST was Rs. 20,522 crore, State GST Rs. 26,605 crore, along with integrated GST of Rs. 56,247 crore, stating the economy is in the midst of a 'fast' recovery. The ministry added, "With the easing out of Covid restrictions, GST collection for July and August 2021 have again crossed Rs. 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace."

August 2021's GST revenue is 30% higher than August 2020's revenue, however, the figure is lower by 3.75% than July 2021. The ministry said, "Even as compared to the August revenues in 2019-20 of Rs. 98,202 crore, this (Rs. 1,12,020 crore collection) is a growth of 14%." Hence, the GST revenue went past the pre-pandemic level.

Aditi Nayar, chief economist of ICRA has commented on the fact, "The dip in GST collections, lower-than-expected core sector growth, and moderation in the August, manufacturing PMI suggest that some caution is warranted regarding the strength of the recovery, that is under-way in the ongoing quarter." However, revenue from domestic transactions like import of services, increased by 27% in August on a year-on-year basis. The government is now expecting that the 'robust GST revenues are likely to continue'.