Goods and Service Tax (GST) collections in December 2020 demonstrated an unforeseen year-on-year development of 11.6 percent to Rs 1.15 lakh crore, the most noteworthy month to month GST revenue gathered up until now. The specialists brought up a few reasons why GST collections topped in December including festive sales.
Reasons Why Goods and Service Tax (GST) Collections Hit Hard in December 2020
Having said that, given below are the three unmistakable explanations for higher Goods and Service Tax (GST) collections in December:
Festive Sales and Restocking
The most fundamental clarification for the hop in GST collections in December could be the expansion in business and economic activities, with everyday cases in India on the decline. Monthly Goods and TaxService Collections have been higher year-on-year since September 2020, demonstrating a slow recuperation of the economy. Festive Sales in November and restocking by retailers ahead of Diwali celebrations might have resulted in the huge GST collection during December. It should be mentioned here that GST for November transactions is gathered in December.
Jump in GST from Imports
The government said that GST collections because of domestic transactions witnessed a growth of 8 percent while GST from imports rose by 27 percent. GST from imports in December 2020 was Rs 27,050 crore, nearly Rs 6,000 crore more than GST on imports (Rs 21,295 crore) in December 2019. the increase in the GST collections on imports demonstrates that international trade is returning to normal. Importers were confronting issues because of faceless assessment in recent months, and so on, and it is conceivable that after numerous portrayals to the government those issues were settled and goods stuck at the ports got clearance for entry into India.
Increased Anti-Evasion Vigilance
A few specialists additionally trait this development to the increased vigilance by the revenue department against evasion. The government has been following non-filers and fake billers furiously for as long as a couple of months. In October and November 2020, 1.63 lakh registrations were canceled because of the non-filing of GSTR-3B returns for over a half year. Additionally, the Directorate General of GST Intelligence (DGGI) and CGST Commissionerates arrested 164 fraudsters, including five chartered accountants and a woman in a nationwide drive over a month. They additionally filed 1,768 cases against 5,745 GSTIN entities. The steady increase in the number of GST returns (GSTR 3B) filed is encouraging, which is 87 lakh in December 2020 against around 81 lakh in December 2019
For more information, visit the website of All India ITR