GST collection to be a record Rs 1.50 lakh crore in April! Why is the Finance Ministry making such a claim?

 

After the epidemic, as the business is coming back on track, the revenue of the government is also increasing. Now quoting Finance Ministry sources, CNBC-TV18 has claimed that the Goods and Services Tax (GST) collection may increase to Rs 1.45-1.50 lakh in April.

If this happens, it will be the highest ever since the implementation of GST in 2017. The GST collection has been increasing continuously since the last few months. In March, it had reached Rs 1.42 lakh crore, which is a record. Also, it was 6.8 percent more than a month ago i.e. in February. The second big record of GST recovery was made in April 2021, when a total of Rs 1.41 lakh crore was recovered.

GST collection increased by 30% in the last financial year
In the financial year 2021-22, the total GST collection stood at Rs 14.83 lakh crore, which is about 30 percent more than the previous financial year. In 2020-21 due to Corona epidemic, the GST collection was very less and only Rs 11.37 lakh crore was recovered. The Finance Ministry has attributed the spurt in GST collection to a check on tax evasion and reforms in the inverted duty structure.

Recovery of more than one lakh crore for the 10th consecutive month
Sources in the ministry say that even in April, the GST recovery is expected to be more than Rs 1 lakh crore. If this happens, it will be the 10th consecutive month when the GST collection will be above Rs 1 lakh crore. GST collection of Rs 1,16,393 crore was done in July, 2021, after which it has never gone below 1 lakh crore. However, after the second wave of corona in May, the GST recovery was reduced to Rs 92,800 crore in June 2021.

Ministry considering rate cut
Amidst the continuous increase in GST collection, the Finance Ministry is considering reducing its rates. The Group of Ministers constituted under the leadership of Karnataka Chief Minister Basavaraj Bomai in its report submitted to the Finance Ministry has suggested to reduce the number of GST rates. It is believed that this will also be discussed in the meeting of the GST Council to be held next month and if everything goes well, the current rates of GST can be cut.

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