While GST collection is expected to increase from July onwards, a third wave of COVID-19 could again reduce it
The gross Goods and Services Tax (GST) collected in the month of June 2021 is Rs 92,849 crore, a government press statement said July 6, 2021. The collection hasn’t slipped to this level since the countrywide COIVD-19 lockdown last year.
The fall in GST collection is being linked to the prevailing novel coronavirus disease (COVID-19) situation during the month preceding June 2021.
During May 2021, most Indian states and Union territories were under either complete or partial lockdown due to the second wave of COVID-19. The second wave reached its peak May 7, 2021.
Some 3.99 crore electronic way invoice (e-way) bills were generated in May 2021, as compared to 5.88 crore in the month of April 2021, down by more than 30 per cent, according to the press statement.
Still, the revenues for the month of June 2021 are two per cent higher than the GST revenues in the same month last year.
The statement however noted that with the number of COVID-19 cases reducing in June and lockdowns easing, more e-way bills would be generated. In fact, the number of e-way bills for June 2021 was 5.5 crore. This, it said, indicated the recovery of trade and business.
It further noted that the daily average generation of e-way bills for the first two weeks of April 2021 was 20 lakh. This came down to 16 lakh in the last week of April 2021 and further to 12 lakh in the two weeks between May 9 and May 22. From June 20, the average generation of e-way bills has again reached 20 lakh.
The statement expressed hope that GST revenues would rise from July onwards.
There is, however, the spectre of a third wave of COVID-19 that has been looming large. If it does occur, GST revenue figures could fall yet again.
The Rs 92,849 crore amount includes a Central GST of ₹16,424 crore, State GST of Rs 20,397, Integrated GST of Rs 49,079 crore and cess of Rs 6,949 crore.
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