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GST collections at nine-month low in Jun’21…

…on account of COVID-led localized lockdowns

* Total gross Goods & Services Tax (GST) collections declined 9.6% MoM to INR928b in Jun’21, marking the lowest collections in nine months. However, the 9.6% MoM decline in Jun’21 was lower than the sharp decline of 27.4% MoM seen in May’21.

* Total collections stood at INR3.4t in 1QFY22, implying a contraction of 5.6% QoQ from INR3.6t a quarter ago. Annually, 1QFY22 collections nearly doubled on a very low base of 41% decline in 1QFY21. The government has now achieved 27% of FY22 (BE) v/s 18% of FY21RE achieved in 1QFY21.

* Under the total GST ambit in Jun’21, CGST collections amounted to INR164.2b, while SGST collections totaled INR204b. GST collections on imports / domestic activity declined 1.1%/12.6% MoM to INR266b/INR663b in Jun’21.

* Additionally, daily e-way bill generation stood at 1.8m units in Jun’21, against a one-year low of 1.3m units in May’21.

* With the second COVID wave spreading rapidly in May’21 – followed by nearly all state governments announcing localized lockdowns – lower GST collections were expected. However, as the states have gradually opened up their economies and active COVID cases are on a downward trajectory, the economic situation may have improved in Jun’21 (data for which would be published in Aug’21)

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