Union Ministry of Finance informed recently that around Rs 1, 05, 155 crore worth GST revenue was collected in October 2020, which is an 8-month high figure.
Out of the total GST revenue collection, CGST accounted for Rs 19, 193 crore, SGST was Rs 25, 411 crore, IGST was Rs 52, 540 crore including Rs 23, 375 crore collected on import of goods and Cess amounted to Rs 8, 011 crore including Rs 932 crore collected on import of goods.
The total number of GSTR-3B Returns filed for October month upto November 1, 2020 was 80 lakh.
Key Highlights
•The government settled Rs 25, 091 crore to CGST and Rs 19, 427 crore to SGST from IGST as a part of regular settlement.
•The total revenue earned by the centre and state governments in October 2020 after regular settlement amounted to Rs 44, 285 crore for CGST and Rs 44, 839 crore for SGST.
•The GST revenues collected in October this year are almost 10 percent higher than the GST revenues earned in October 2019. The GST revenues collected in October 2019 amounted to Rs 95,379 crore.
•This is the first time in the current financial year and the first time after February 2020 that the gross GST revenue collection crossed Rs 1 lakh crore mark.
How did GST Collection hit an 8-month high in October 2020?
During October 2020, the revenues received from the import of goods was 9 percent higher and the revenues from domestic transaction including import of services was 11 percent higher than the revenues from these sources during October 2019.
The GST revenue growth in comparison to the months of July, August and September 2020 was also at an all-time high amid the COVID-19 pandemic. While July recorded a minus 14 percent GST revenue growth, August recorded minus 8 percent and September recorded 5 percent growth.
What does this indicate?
The GST revenue growth in October in comparison to previous months shows a positive growth trajectory. This clearly indicates that the Indian economy is well on its road to recovery after the national lockdown imposed to contain the COVID-19 pandemic forced the economy to come to a standstill in the first quarter of the new fiscal year.
The gradual opening of the economy by the government while battling the COVID-19 pandemic side-by-side has shown a positive growth trajectory. The reopening guidelines issued by the Union Home Ministry in September had allowed the opening of almost all activities outside the containment zones. The Ministry further allowed the reopening of cinema halls and theatres outside containment zones in its October reopening guidelines.
Background
The GST revenue collections had fallen in this current fiscal year after the national lockdown imposed to battle the COVID-19 outbreak served a major blow to the economic activity.
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