In a significant indicator of the Indian economy picking pace, the GST collection in July increased 25.4 percent compared to June 2021.
The Goods and Service Tax (GST) collections for the month of July 2021 registered an increase of 33 percent compared to the collections of Rs 87,422 crore in the month of July in 2020.
The numbers indicated the economic activity picking up in the last month with states gradually easing lockdowns after the second wave of the coronavirus pandemic.
In June, GST collections registered the lowest amount in 10 months as Rs 92,849 tax received for selling activity in May 2021. June 2021 was the first time that GST collections were below the Rs 1 lakh crore in the last 8 months.
Nevertheless, GST collection bounced back in July 2021 to touch Rs 1,16,393 crore, as per the latest data released by the Ministry of Finance.
In the current fiscal year, this number is only topped by the GST collection for April 2021 at Rs 1.41 lakh crore.
Analysts and financial experts are forecasting further uptick in economic activity and, consequently, the GST collection in the next few months. The market is showing optimism despite the possibility of a third wave of the COVID-19 pandemic.
In a statement, the Finance Ministry said, “With the easing out of Covid restrictions, GST collection for July 2021 has again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace. The robust GST revenues are likely to continue in the coming months too.”
Major stated that led the uptick in GST collection were Punjab, Haryana, Kerala, Gujarat, Andhra Pradesh, Tamil Nadu and Telangana.
Of the gross GST revenue collected in July 2021, which is the combined central and state GST collection, Rs 22,197 crore was central GST while state GST amounted to Rs 28,541 crore. Rs 57,864 crore was Integrated GST (which includes Rs 27,900 crore from imports) and Rs 7,790 crore (includes Rs 815 crore on imports) collected as cess, the Ministry revealed.
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 "Indian economy picks up pace with GST collection of Rs 1.16 lakh crore in July")
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