Record GST collections expected in March, set to hit ₹1.30 lakh crore

March 9, 2021 - By Elizabeth

Read Time:3 Minute, 42 Second

The sales in March can also additionally go the file Rs.1,19,875 crore accumulated in January with the aid of using at the least Rs.10,000 crore.

India’s Goods and Services Tax (GST) series in March 2021 is anticipated to the touch a file excessive of round Rs.1.30 lakh crore at the backdrop of a speedy financial healing from the Covid-19 pandemic and a difficult lockdown necessitated with the aid of using it, humans aware about the improvement stated.

The humans, who requested now no longer to be named, attributed the improved collections additionally to stricter compliance thru e-invoicing, which had made it tough to prevent tax.

The sales in March can also additionally go the file Rs.1,19,875 crore accumulated in January with the aid of using at the least Rs.10,000 crore, the humans stated.

The healing in GST collections displays the bigger revival withinside the economic system. India’s economic system shrank with the aid of using 24.4% withinside the 3 months ended June 30 and 7.3% withinside the 3 months ended October, earlier than getting into boom territory and increasing with the aid of using 0.4% withinside the 3 months ended December 31. The authorities has anticipated the complete 12 months’s GDP contraction at 8%, even though many professionals anticipate it to do better.

After closing in contraction mode for 6 months in a row, considering March 2020 — India imposed a 68-day-lengthy difficult lockdown in overdue March — GST collections began out developing from September 2020. GST collections, which plunged to an rock bottom at Rs.32,172 crore in April 2020, touched a file Rs.1,19,875 crore in January. The brand new GST series discern changed into Rs.1,13,143 crore for February 2021, a 7.3% 12 months-on-12 months boom.

Pratik Jain, accomplice and leader, Indirect Tax, PwC India, stated: “GST collections are on an upsurge in remaining four-5 months even with out elevating GST rates. This is due to tightening of compliances, accelerated rigours in audit /research and leveraging era to widen the tax base. Besides, economic system is convalescing rapid and that might additionally be pondered withinside the March collections.”

The obligatory e-invoicing device that began out in January this 12 months has plugged commercial enterprise-to-commercial enterprise (B2B) tax evasion to a amazing volume as transactions above Rs.one hundred crore are often B2B, wherein accurate invoicing is insisted upon with the aid of using each customers and dealers to avail enter tax credit and keep away from penalties, one of the humans stated above stated.

“Thus, accelerated use of era has helped to ease compliance burden on the only hand and raised worry amongst unscrupulous factors on the alternative,” he introduced.

The authorities made e-invoicing obligatory for agencies with an annual turnover of Rs.one hundred crore and above from January 1. The concept is to step by step make it obligatory for all.

The 2d man or woman introduced that no considerable B2B transaction is now feasible beneath the GST radar as e-invoices require QR codes, that are generated from the GST Network (GSTN). “GSTN has an immediately file of all transactions,” he introduced.

“There are extra motives for the optimism that GST collections ought to go Rs.1.30 lakh crore in March. One is the economic 12 months final on March 31, and the alternative is a transient freeze on refunds.”

The tax branch generally is going gradual on refunds closer to the quit of the economic 12 months to make it less complicated to shut books, this man or woman explained.

The humans stated the better GST series in March is anticipated notwithstanding February being a smaller month. Official GST series information comes with a lag due to the fact the remaining date for paying GST is the 20 th day of the subsequent month. Therefore, the March GST series discern truely displays commercial enterprise sports in February.

MS Mani, accomplice at Deloitte India, stated: “Despite the less quantity of running days in February and even though the offerings area keeps to function with restrictions, the GST collections for February [officially March figures] are anticipated to be sturdy because of the continuing boom in GDP [gross domestic product] and the anti-evasion force undertaken with the aid of using the authorities.”