GST Revenue collection for January 2021 almost touches Rs. 1.20 lakh crore

• Be N By IAS, Delhi
• 31, Jan 2021

For : GS-3: Indian Economy, Resource mobilisation, GST

CONTEXT:

The revenues for the month of January 2021 are 8% higher than the GST revenues of Jan 2020, which in itself was more than Rs.1.1 lakh crore.

GST REVENUE COLLECTION:

Highest monthly tax collection: Recording the highest monthly tax collection, the Goods and Services Tax (GST) revenue collection for January 2021 has touched nearly ₹1.20 lakh crore.

• The tax collection is higher than the December 2020 record set in the last round, which witnessed an unexpected rise of 11.6 per cent.

Distribution of GST: The gross GST revenue collected is ₹1,19,847 crore of which

1. CGST is ₹21,923 crore,
2. SGST is ₹29,014 crore,
3. IGST is ₹60,288 crore (including ₹27,424 crore collected on import of goods) and
4. Cess is ₹8,622 crore (including ₹883 crore collected on import of goods)

Import revenue grows: Marking an upward trend in trade:

• Revenues from import of goods were 16% higher and
• Revenues from domestic transactions, including import of services, are 6% higher than the revenues from these sources during the same month last year.

Highest since the introduction of GST: Highest since the introduction of GST, the revenue has almost touched the ₹1.2 lakh crore mark, exceeding last month’s record collection of ₹1.15 lakh crore.

SIGNIFICANCE:

Clear indicators of rapid economic recovery: GST revenues above ₹1 lakh crore for a stretch of last four months and a steep increasing trend over this period are clear indicators of rapid economic recovery after the coronavirus pandemic. FACTORS FOR

RISE IN GST REVENUES:

Following have contributed to the steady increase in tax revenue over the last few months.

• 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

GOODS AND SERVICES TAX (GST):

• It was launched on 1st July 2017.
• It is a
  • Multi-stage,
  • Comprehensive,
  • Destination-based tax
• Four slabs: of 5, 12, 18, and 28 percent.
• Exempted Products: Levied on every product except
  • Petroleum,
  • Alcohol,
  • Tobacco, and
  • Stamp duty on real estate
• It has been established by the 101st Constitutional Amendment Act.

Source: The Hindu

MCQ:

Q. Which of the following statements is/are correct regarding Goods and Services Tax (GST)?

1. GST is a Multi-stage, Comprehensive, Destination-based tax.
2. Gross GST revenue collected in December 2020 rose to an all-time monthly high since the implementation of the new tax regime.
3. GST is exempted on Petroleum and Tobacco.

Select the correct statements.

• a) Only 1 and 2
• b) Only 2 and 3
• c) Only 3 and 1
• d) 1,2 and 3

ANS: D