GST collection surges to Rs. 1.3 trillion

In step with the constant rise in the past five months, goods and services tax (GST) collected in October rose to Rs 1.3 trillion, which is 24 per cent higher than in the same period a year ago and 36 per cent more than the collection in the equivalent month of 2019-20, which was before the pandemic.

This is the second highest collection since the introduction of the new indirect regime in 2017, reflecting strong economic recovery in the second half of the fiscal year.

The highest collection ever was more than Rs 1.40 trillion in April this year. The finance ministry expects the positive trend to continue and the second half of the year will post higher revenues.

“This is very much in line with the trend in economic recovery. This is also evident from the trend in the e-way bills generated every month since the second wave. The revenues would have still been higher if the sales of cars and other products had not been affected on account of disruption in supply of semiconductors,” the ministry said on Monday.  Further, the ministry said the efforts of the state and Central tax administration helped collection, resulting in increased compliance over previous months.