NEW DELHI: Goods and services tax (GST) collection topped Rs 1. 38 lakh crore in January, compared to Rs 1. 29 lakh crore in the previous month, providing further comfort to the government ahead of the Budget.
The government appeared satisfied with the overall jump in revenue, as collections up to 3 pm on Monday were the second highest for any month since the new regime came into force in July 2017. The previous high of Rs 1. 41 lakh crore was recorded in April (for sales in March 2020-21).
It marked only the fourth month of over Rs 1. 3 lakh crore mop-up, with the thrust coming from GST on imports, which soared 26%, while the rise on domestic transactions was to the tune of 12%, the finance ministry said in a statement. “The revenues for the month of January 2022 are15% higher than the GST revenues in the same month last year and 25% higher than the GST revenues in January 2020,” it said.
The numbers come despite most experts and businessmen arguing that Omicron would impact economic activity. While the third wave started in December, it rose sharply in January and is seen to have peaked now. The Economic Survey has already pointed to the rapid rise in tax collections, providing the Centre with enhanced headroom for fiscal intervention.
“The GST collections have once again surpassed expectations. The continuing increase in collections both on domestic transactions and import transactions viewed together with the recent increases in export revenues, would provide more fiscal headroom in the FY23 budget calculations,” said MS Mani, partner at Deloitte India.
The government appeared satisfied with the overall jump in revenue, as collections up to 3 pm on Monday were the second highest for any month since the new regime came into force in July 2017. The previous high of Rs 1. 41 lakh crore was recorded in April (for sales in March 2020-21).
It marked only the fourth month of over Rs 1. 3 lakh crore mop-up, with the thrust coming from GST on imports, which soared 26%, while the rise on domestic transactions was to the tune of 12%, the finance ministry said in a statement. “The revenues for the month of January 2022 are15% higher than the GST revenues in the same month last year and 25% higher than the GST revenues in January 2020,” it said.
The numbers come despite most experts and businessmen arguing that Omicron would impact economic activity. While the third wave started in December, it rose sharply in January and is seen to have peaked now. The Economic Survey has already pointed to the rapid rise in tax collections, providing the Centre with enhanced headroom for fiscal intervention.
“The GST collections have once again surpassed expectations. The continuing increase in collections both on domestic transactions and import transactions viewed together with the recent increases in export revenues, would provide more fiscal headroom in the FY23 budget calculations,” said MS Mani, partner at Deloitte India.
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