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Highest ever GST collections in Apr’21

* Goods and Service Tax (GST) collections came in at INR1.4t in Apr’21, above INR1.2t collected in Mar’21, and far higher than INR323b collected in Apr’20 (on the blanket closure of the entire economy due to the first COVID wave).

* With the start of the new financial year, Apr’21 GST collections imply 11.1% of FY22BE.

* Of the total GST collections in Apr’21, CGST amounted to INR278.4b, SGST to INR356.2b, and IGST to INR684.8b. Only domestic collections amounted to INR1.1t during the month.

* Additionally, daily e-way bill generation for the month up to 25th Apr’21 stood at 2m units. Over the remaining five days, this number is likely to have risen even higher.

* GST revenues in Apr’21 exceeded INR1t for the seventh time in a row, implying a consistent improvement in economic activity. Moreover, closer monitoring against fake billing, deep data analytics using data from multiple sources (including GST), income tax and customs IT systems, and effective tax administration have contributed to the steady increase in tax revenue, according to the finance ministry.

* Nevertheless, with the second COVID wave intensifying and the localized lockdowns that have come along with it – the effects of which are likely to reflect in next month’s data (for May’21) – the impressive streak of >INR1t GST collections may be interrupted.

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