The monthly Goods and Services Tax (GST) collection crossed Rs 1 lakh crore mark for the fifth time in a row in February. GST collection rose 7 per cent year-on-year to Rs 1.13 lakh crore in the month.
"In line with the trend of recovery in the GST revenues over past five months, the revenues for the month of February 2021 are 7 per cent higher than the GST revenues in the same month last year," the Finance Ministry said.
Of the Rs 1.13 lakh crore collected in February, Rs 21,092 crore was Central GST (CGST), Rs 27,273 crore was State GST (SGST) and Rs 55,253 crore was Integrated GST (IGST). The amount collected through cess stood at Rs 9,525 crore, including Rs 660 crore collected on import of goods.
The monthly GST collection crossed Rs 1 lakh crore mark for the fifth time in a row and Rs 1.1 lakh crore mark for the third straight month. "This is a clear indication of the economic recovery and the impact of various measures taken by tax administration to improve compliance," the ministry said.
The government has settled Rs 22,398 crore to CGST and Rs 17,534 crore to SGST from IGST as regular settlement. In addition, the Centre has also settled Rs 48,000 crore as IGST ad-hoc settlement in the ratio of 50:50 between Centre and states/union territories.
"The total revenue of Centre and the states after regular settlement and ad-hoc settlement in the month of February 2021 is Rs 67,490 crore for CGST and Rs 68,807 crore for the SGST," the release said.
During February, revenue from import of goods was 15 per cent higher from the year-ago month, while revenue from domestic transaction (including import of services) was 5 per cent higher.
The monthly GST collection stood at Rs 1.20 lakh crore in January 2021.
"While the growth of GST collections eased mildly in February 2021, it remained healthy, in line with the consolidation in the momentum of economic activity observed across a variety of lead indicators. Subsequently, a favourable base effect is likely to result in the CGST collections expanding by 18-23 per cent in March 2021," ICRA Principal Economist Aditi Nayar said.
However, she said, the settlement of IGST of Rs 48,000 crore between the Centre and the states, will adversely impact the net revenue (CGST+IGST) of the Centre in February 2021, resulting in a moderation in the growth of its gross and net tax revenues in that month.
"This could be a key reason why the FY2021 RE (Revised Estimates) implicitly built in a contraction in CGST +IGST of 27 per cent in Q4 FY2021," Nayar added.