Based on inputs by Meeta K
The Indian economy is on path to recovery, the department of revenue has said based on the Goods and Services Tax (GST) collections for October, that have grossed Rs 1.05 lakh crore, the highest so far in the financial year and 10% higher than collections in the same month last year, which stood at Rs 95,379 crore.
The growth in the numbers – crossing the Rs 1 lakh crore mark for the rst time since April – showed clear signs of recovery, the department of revenue said in a statement.
“The growth in GST revenue as compared to that in months of July, August and September, 2020 of -14%, -8% and 5% respectively clearly shows the trajectory of recovery of the economy and, correspondingly, of the revenues,” the department said.
During October, revenues from import of goods was 9% higher than the revenues from these sources during the same month last year.
“Some potential reasons for this surge could be the splurged demand on account of the festivities and input tax credit and other similar reconciliations which were due for businesses in September,” said Abhishek Jain, tax partner at EY.
“Continuance of this trend will help in narrowing the scale deficit for FY 21 and will go a long way in reviving business confidence across sectors as the impact of the unlock process across states gets translated into GST collection figures,” said MS Mani, Senior Director, Deloitte.