How did GST collection hits 8-month high in October 2020?

The Union Ministry of Finance recently notified total amount of GST revenue collected in the month of October stands around  Rs 1, 05, 155 crore.  The collected revenue is an 8-month high figure.

Highlights

  • Out of the total collected GST revenue, CGST accounts for Rs 19, 193 crore, SGST accounts for Rs 25, 411 crore, and IGST accounts Rs 52, 540 crore.
  • Aprat from that, Rs 23, 375 crore were collected on import of goods.
  • Total Cess collection is Rs 8, 011 crore, while
  • Rs 932 crore were collected on import of goods.
  • Total number of GSTR-3B Returns filed for October month is 80 lakh.
  • Total revenue collected in October 2020 after regular settlement amounts to Rs 44, 285 crore for CGST and Rs 44, 839 crore for SGST.
  • GST revenues collected in October 2020 is 10 percent higher than the GST revenues earned in October 2019.
  • This is the first time in the current financial year that the gross GST revenue collection crossed Rs 1 lakh crore.

What does this show?

The GST revenue growth in October shows a positive growth trajectory when compared to the previous months. The positive growth trajectory clearly shows that the Indian economy is following the recovery path that was hit hard after the national lockdown was imposed amid the COVID-19 pandemic. The lockdown had forced the economy to come to a standstill in the first quarter the current fiscal year.

Background

While the battle against the COVID-19 is still going on, the government is gradually opening up the economy side-by-side. As a result, the economy  has shown a positive growth trajectory. In the  reopening guidelines of September, Union Home Ministry had allowed the opening of almost all activities outside the containment zones. The Ministry also allowed the reopening of cinema halls and theatres outside containment zones in its October guidelines.