India: GST collection: Barely half of full-year FY21 target achieved

  • The COVID-19 pandemic has hit Goods and Services Tax (GST) collections, with India so far in FY21 achieving only less than half the revised full-year target.
  • The Central government has collected only 47% of the revised full-year target of INR6.90tr GST collections. It may be noted that the annual GST figures in the Budget document include only the Centre’s share and the Integrated GST component. It was estimated that out of the total tax collections under GST, 84% will come from central GST, and 16% from the GST compensation cess.
  • According to Union Budget 2021, the government has revised down its estimates by 25% to INR5.15tr from INR6.91tr for FY21.
  • So far, INR2.43tr have been collected, which is 52.81% less from the total target of INR5.15tr for the current fiscal. The revenues for Feb 21were 7% higher y/y.
  • For FY22, the government has estimated the target of INR6.3tr, which is 22.3% more of its revised estimate for FY21.

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