GST Collections in Sept surpassed 1.17 lakh crores. It is a 22.5 percent year-on-year increase, the fourth-highest collection since its inception on July 1, 2017, and the second-highest in the current fiscal year. The GST Collection in September indicates a successful transition of commercial activities following the second wave of the Covid-19 pandemic as well as additional difficulties in compliances. In this article, we will discuss the latest news on GST collections in September 2021.
What is GST?
GST(Goods and Services Tax) is an indirect tax that the sellers have to collect on the behalf of the government. To do so, sellers have to get GST Registration and GSTIN Number. It was implemented in July 2017 to cascade the effects of other indirect taxes.
The procedure of GST from registration to GST Return Filing is completely online. Hence, it boosts the speed of the whole process for both taxpayers and professionals.
Transitions in Economy after Second Wave
- Indirect tax revenues, an indicator of economic stability, have surpassed 1 lakh crore for three months in a row after falling short in June (92,849 crore) due to the devastating second wave of Covid-19 that severely damaged the country in April and May.
- The June collection-number represents the amount of commercial transactions that occurred in May. Following the second wave, many states were under temporary or permanent lockdown in May of this year. However, there was no government lockdown like the previous year. So this might also have contributed to the rise in GST Collections of September.
Finance Ministry on GST collections in Sept jumped to 1.17 lakh crore
“The monthly average total GST revenue for the second quarter of the fiscal year was 1.15 lakh crore, a 5% increase over the monthly average collections of 1.10 lakh crore in the first quarter of the year. This obviously demonstrates that the economy is rebounding quickly,” stated the Union Ministry of finance in a statement.
Also, as per the finance ministry, collections from imports of goods were 30% higher in September compared to the same month last year, while revenue from domestic transactions (including imports of services) was 20% higher.
Moreover, If you want any other guidance relating to GST Return Filing or GST Registration, please feel free to talk to our business advisors at 8881-069-069.
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