Financial Insights

GST collections hit an all-time high of Rs 1.42 lakh crore

A new record high has been set as collections of GST have achieved a new high: Rs 1.42 lakh crore.

This collection relates to sales made in the month of February 2022 as per data from the Union Finance Ministry. This was 14.7% higher than the figure in March 2021 and 45.6% higher than the collection in March 2020.

The substantial surge in collection was on account of anti-evasion measures adopted, specially against the people engaged in fake billing.

The average monthly collection for FY22 stood at Rs 1.23 lakh crore, 30.5% higher than the monthly average of the previous fiscal year.

“Coupled with economic recovery, anti-evasion activities, especially action against fake billers, have been contributing to the enhanced GST. The improvement in revenue has also been due to various rate rationalisation measures undertaken by the (GST) Council to correct inverted duty structure,” the Finance Ministry said in a statement.

Eway bills generated in the month were 6.91 crore, higher than the 6.88 crore generated last month. The rise in eway bills despite being a shorter month indicates recovery and progression of business activities.

With this, it is the 6th straight month when GST collections have remained above the Rs 1.3 lakh crore-mark. The Centre’s GST collection now has exceeded the revised budget target of Rs 5.70 lakh crore set for the previous fiscal ended March 31.

Highlight by Aman Agarwal.

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