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* Goods and Service Tax (GST) collections came in at INR1.03t in May’21, lower than INR1.4t collected in Apr’21 and way higher than only INR620b collected in May’20 (due to the blanket shut down of the entire economy owing to the first COVID wave).

* GST collections during Apr-May’21 stood at INR2.4t, about a fifth of FY22BE, v/s INR943b collected during the corresponding months last year.

* Of the total GST collections in May’21, CGST/SGST/IGST amounted to INR175.9b/INR226.5b/INR532b. Only domestic collections amounted to INR758b in May’21 v/s INR1.1t in Apr’21.

* Additionally, daily e-way bill generation in May’21 (up to 30th May’21) stood at 1.3m units, levels closer to those seen during the first COVID wave last year.

* In what feels like a deja vu, the Finance Ministry in its GST release said, “while the taxpayers with a turnover above INR50m had to file their returns by 4th Jun’21, which they would have otherwise filed by 20th May’21, smaller taxpayers with a turnover less than INR50m still have time till the first week of Jul’21 to file their returns without any late fee and interest and the revenue from these taxpayers is deferred till then.” Therefore, the actual revenues for May’21 would have been higher.

* With the second COVID-19 wave spreading widely in May’21, followed by nearly all state government’s announcing localized lockdowns, economic activity last month might have been severely hampered. If so, GST collections data in Jun’21 (for economic activity carried out in May’21) might not be as high as it has been in the past eight months.

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