November 2, 2020
Compared to Oct 2019, this October saw a 9% increase in revenues from the import of goods, while revenues from domestic transactions are 11% higher
The growth in GST revenue compared to Jul, Aug, & Sep 2020 (of -14%, -8% and 5% respectively) shows a trajectory of recovery of the economy
Maharashtra had the highest total GST collected (US$2.1 billion), while Arunachal Pradesh showed the greatest growth since last October
On Oct 1, 2020, the government introduced the e-invoicing facility which saw over 49.5 mn e-invoices generated by 27,400 taxpayers in the first month
The gross Goods and Service Tax (GST) revenue collected in the month of October 2020 stood at US$ 14.11 billion, 10 percent higher than collections in the same month last year (US$ 12.08 billion), and the highest amount collected since February 2020.
Of this gross revenue, the Central GST amounted to US$ 2.6 billion, State GST was US$ 2.6 billion, Integrated GST was US$ 7.05 billion, and cess was US$ 1.08 billion, including the taxes collected on import of goods. Compared to the same month last year, this October saw a 9 percent increase in the revenues from the import of goods, while the revenues from domestic transactions (including import of services) are 11 percent higher.
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 a trajectory of recovery of the economy, and thus of the revenues. Maharashtra topped the states in terms of absolute GST collected (US$2.1 billion), while Arunachal Pradesh showed the greatest percentage increase from last October (138 per cent). This meteoric rise across most states is essential towards ensuring India’s economic stability and growth in COVID and post-COVID times.
Recently, the government has also made a concerted effort to improve enforcement capabilities of GST collection. One of the primary steps in this regard was the introduction of the e-invoicing facility on October 1, 2020. Within the first month of introduction, more than 49.5 million e-invoices were generated on the NIC portal by 27,400 taxpayers – this has also contributed heavily to the increased revenues seen in October.
The Government of India has implemented more than 7,000 business-oriented reforms in the past few years. The introduction of the Goods and Services Tax (GST) in 2017 was the most momentous as it drastically simplified a complex system of taxation, replacing it with a unified nation-wide single tax regime, making it much easier to do business all across India. As a result, India moved to the 63rd position in the World Bank’s Ease of Doing Business Index 2019.