As economic activities picked up after the withdrawal of stringent lockdown restrictions, the Goods and Service Tax (GST) collection touched a new high of nearly ₹1.2 lakh crore in January.
According to official data released on Sunday, the tax collection in January 2021 beat the previous collection record of ₹1,15,174 crores in the last month.
"The GST collection in January 2021 is ₹1,19,847 crore which is an 8.15 per cent jump from ₹1,10,818 crore collected in January 2020. So far, the figures are available up to 6 pm on January 31 and the numbers are still being compiled," an official told Hindustan Times.
According to experts, the annual filing of GST returns by the extended deadline of December 31 may also have resulted in some businesses clearing their entire liability and paying higher tax.
In a statement, the Finance Ministry said, "The total number of GSTR-3B returns filed in December up to January 31, 2021, is 90 lakh. The GST revenue during January 2021 is the highest since the introduction of GST and has almost touched the ₹1.2 lakh crore mark."
"In the last four months the collection of GST revenue above ₹1 lakh crore and steep increasing trend over this period is a clear indication of rapid economic recovery post-pandemic," the finance ministry added.
Explaining the ways of achieving this new high, the ministry said, "Close monitoring against fake billing, deep data analytics using data from multiple sources including GST, income tax and Custom IT systems and effective tax administration have contributed to the steady increase in tax revenue over the last few months."
According to MS Mani, senior director at Deloitte India, the surge in GST collections observed in the last four months is expected to be sustained in the coming months of the current fiscal with more service sector activities like aviation, hospitality, and entertainment opening.