Lowest collections since Sept. 2020
India’s Gross GST revenue fell to Rs. 1.02 lakh crore in May, from a record Rs. 1.41 lakh crore in April, but the number was likely to be revised upwards, the government said on Saturday.
The May collections, broadly pertaining to transactions in April, are the lowest since September 2020, which recorded revenue of Rs. 95,480 crore.
Further dip expected
Economists expect the collections to dip further in June even though the current lockdowns across the States may not be denting activity as much as last year’s national lockdown.
“The moderation in GST inflows was expected as evident in the sequential slowdown in e-way bills between March and April. With the extension and widening of restrictions by various States in May 2021, the generation of e-way bills have declined further, which will further dampen GST collections in June,” said ICRA chief economist Aditi Nayar.
The Rs. 1,02,709 crore collected in May includes revenues from domestic transactions till June 4. This is 65% higher than May 2020, when just Rs. 62,151 crore was received amid the national lockdown.