Goods and services tax (GST) collections are likely to remain stable in case no major obstacles come up for the economy, such as the rise in Covid-19 cases and eventual restrictions, said a report by Motilal Oswal Institutional Equities.
Citing the GST collection numbers for November, the ‘Ecoscope’ report said while GST collections exceeding the Rs one lakh crore-mark for the second time in a row is certainly a positive, November data is weaker than expected (Rs 1.1-1.15 lakh crore).
Growth in GST receipts from September — after enormous contractions were seen over March–August 2020 — suggests continued recovery in economic activity and the gradual return to normalcy, it said.
“Therefore, barring any surprises (such as a rise in Covid-19 infections, leading to a sudden halt in economic activity), we believe GST collections would remain fairly stable going ahead,” it said.
“Assuming average GST collections of Rs 1.1 trillion (Rs 1.05 trillion) for the remaining four months of FY21 — implying average growth of 5.5 percent (1 percent) over December 2020 – March 2021 GST receipts would report a shortfall of 20 percent (21.4 percent) in FY21,” said the report.
Goods and Service Tax (GST) collections in November stood at nearly Rs 1.05 lakh crore, broadly flat sequentially but 1.4 percent YoY higher than collections in November 2019.
With this, the total amount of GST collected during April-November stood at Rs 6.7 lakh crore, 17.4 percent YoY lower than the corresponding period a year ago.
