GST collections for October exceeds Rs 1 lakh-crore mark, first time since COVID lockdown

In a major economic boost for the country amid the COVID-19 crisis, the Goods and Services Tax (GST) collections crossed the  Rs 1 lakh crore mark in October. The COVID-19 pandemic and the subsequent lockdown had as such dented economic activity.

It may be noted that the revenue collections from the GST touched its highest level so far this fiscal in September at Rs 95,480 crore. The gross GST revenue collected in the month of October 2020 is Rs 1,05,155 crore of which CGST is Rs 19,193 crore, SGST is Rs 5,411 crore, IGST is Rs 52,540 crore (including Rs 23,375 crore collected on import of goods) and cess is Rs 8,011 crore (including Rs 932 crore collected on import of goods).

The revenue for the month is 10 per cent higher than Rs 95,379 crore collected in the same month last year.

Finance Ministry in an official statement said, "total number of GSTR-3B Returns filed for the month of October up to 31 October 2020 is 80 lakh. The growth in tax collected shows “the trajectory of recovery of the economy”.

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Centre Releases First Tranche Of GST Dues

Meanwhile, the Centre on October 24 released the first tranche of pending GST dues, borrowing and transferring Rs 6000 crores to 16 states and two Union Territories (UTs), opening a special borrowing window to address the shortfall in the GST. "The Government of India has evolved a special borrowing window to address the shortfall in the GST collection during the year 2020 - 2021. 21 States and 2 Union Territories opted for this special window involving back-to-back borrowing coordinated by the Ministry of Finance," the Finance Ministry said in a statement.

According to the details put out by the Ministry of Finance, the borrowing is at an interest rate of 5.19 per cent and is intended to make weekly releases of Rs 6,000 crore to the States. The tenor of borrowing is expected to be broadly in the range of 3 to 5 years.

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