GST collection up 18% YoY at over Rs 1.33 trn in Feb: FinMin

GST collections in February grew 18 per cent to over Rs 1.33 trillion in February even as the Omicron wave dented the month-on-month collection momentum.

This is for the fifth time in the current fiscal that the Goods and Services Tax (GST) collection has crossed Rs 1.3 trillion-mark. Also, this is the first time, cess collection has crossed the Rs 10,000 crore-mark, signifying recovery in certain key sectors, especially automobile sales, the Finance Ministry said on Tuesday.

The GST revenues had hit a record high of nearly Rs 1.41 trillion in January.

"The gross GST revenue collected in February 2022 is Rs 1,33,026 crore of which Central GST is Rs 24,435 crore, State GST is Rs 30,779 crore, Integrated GST is Rs 67,471 crore (including Rs 33,837 crore collected on import of goods) and cess is Rs 10,340 crore (including Rs 638 crore collected on import of goods)," the ministry said in a statement.

The revenues for February 2022 are 18 per cent higher than the GST revenues in the same month last year and 26 per cent higher than in February 2020.

During the month, revenues from import of goods were 38 per cent higher, and that from the domestic transaction are 12 per cent higher than the year-ago period.

The ministry said February, being a 28-day month, normally witnesses revenues lower than in January.

This growth in February 2022 should also be seen in the context of partial lockdowns, weekend and night curfews and various restrictions that were put in place by many states due to the Omicron wave, which peaked around January 20, it added.

During the current fiscal, the gross mop-up in April was over Rs 1.39 trillion, in May (Rs 97,821 crore), June (Rs 92,800 crore), July (over Rs 1.16 trillion), August (over Rs 1.12 trillion), September (over Rs 1.17 trillion), October (over Rs 1.30 trillion), November (Rs 1.31 trillion) and December (over Rs 1.29 trillion).

Deloitte India Partner MS Mani said that GST collections exceeding Rs 1.33 trillion despite the challenging pandemic situation on January 22 indicate that the collections are now on a stable trajectory and the FY22 targets would be exceeded.

"While on an overall basis, the collections are 18 per cent higher than the same period last year, there is significant divergence amongst states with increases in the range of 2 per cent to 23 per cent amongst the large states," Mani added.

NA Shah Associates Partner Parag Mehta said the GST audits for March 2021 have also been completed on February 28 and balance tax payable due to errors and omissions has also led to higher collections.

"The growth trajectory in collections should now be in this range only," Mehta added.

Tax Connect Advisory Partner Vivek Jalan said the robust GST Collection is a result of restrictions on availing of ITC by the GST departments across the country.