Higher compliance, pent-up demand pushed GST mop-up to new high, shows data

Collection hit a record in December 2020, crossing Rs 1.15 trillion, in a sign that faster recovery could really be on its way

Goods and Services Tax collection hit a record in December 2020, crossing Rs 1.15 trillion, in a sign that faster recovery, visible from upward revisions in India’s economic growth estimates, could well be on its way. 

But apart from this number, GST collections for the lockdown and post-lockdown months of 2020-21 shed light on the reasons why the revenues under the tax are recovering. 

Before we go into the analysis, it is important to note that this new data represents GST revenue “for” economic activity in a particular month, and returns filed for that month till the end of 2020.