{"id":38367,"date":"2021-12-03T15:38:46","date_gmt":"2021-12-03T10:08:46","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=38367"},"modified":"2021-12-03T15:38:48","modified_gmt":"2021-12-03T10:08:48","slug":"gst-revenue-has-made-a-brilliant-recovery-in-quarter-1of-financial-year-2021-22","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/gst-revenue-has-made-a-brilliant-recovery-in-quarter-1of-financial-year-2021-22\/","title":{"rendered":"GST Revenue has made a brilliant recovery in Quarter 1of Financial Year 2021-22"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In India, Goods and Services Tax is one of the primary sources of revenue for every State as it shares nearly one-third of their taxable income. GST is a destination-based consumption tax and is a good representative of the performance of a state\u2019s economy. Thus, the <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST <\/strong><\/a>recovery also indicates the regaining of the State\u2019s domestic product. The Covid-19 epidemic and in due course extended lockdown; States saw a high fall in the GST collection in the first quarter of 2020-21. Favorably, economic activity was in bloom in the first quarter of 2021-22. This write-up will discuss how GST revenue has made a brilliant recovery in Quarter 1 of 2021-22.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/gst-revenue-has-made-a-brilliant-recovery-in-quarter-1of-financial-year-2021-22\/#Recent_trends_in_GST_collection\" >Recent trends in GST collection<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/gst-revenue-has-made-a-brilliant-recovery-in-quarter-1of-financial-year-2021-22\/#Anti-evasion_moves_that_have_contributed_to_higher_GST_revenue\" >Anti-evasion moves that have contributed to higher GST\nrevenue<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/gst-revenue-has-made-a-brilliant-recovery-in-quarter-1of-financial-year-2021-22\/#Statistics_of_Past_financial_year_related_to_GST_revenue_collection\" >Statistics of Past financial year related\nto GST revenue collection<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/gst-revenue-has-made-a-brilliant-recovery-in-quarter-1of-financial-year-2021-22\/#Compensation_provided_to_the_states_having_GST_revenue_shortfall\" >Compensation provided to the states\nhaving GST revenue shortfall<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/gst-revenue-has-made-a-brilliant-recovery-in-quarter-1of-financial-year-2021-22\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recent_trends_in_GST_collection\"><\/span>Recent trends in GST collection<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In quarter 1 of the financial\nyear 2021-22, States\u2019 GST collection on average grew at 12.7 % compared to the\ncorresponding period in the previous quarter 1 of the financial year 2020-21.\nHowever, as Covid- induced lockdowns bump into the State economies back,\nrevenue from GST drops. <\/p>\n\n\n\n<p>In Quarter 1 of Financial\n2021-22, States like Gujarat, West Bengal, and Punjab have done amazingly well\nin GST growth, while Chhattisgarh, Karnataka, and Odisha have performed poorly.\nAlso, States like Kerala, Uttar Pradesh, and Madhya Pradesh were severely hit\nin the GST collection. <\/p>\n\n\n\n<p>The slow weakening of the unusual\ncoronavirus expanded vaccines and opening up of the economy led to the restart\nof economic activity in full swing. The situation was much better in the first\nquarter of 2021-22, which was reflected in higher GST collection in quarter 1\nof 2021. Additionally, States in ordinary grew tremendously by 98 % compared to\nthe relevant previous period.<\/p>\n\n\n\n<p>This high growth rate in the GST\ncollection might give an apprehension that States have revived. However, this\ncan be deceptive since the growth indicator fails to reflect the recovery\nnature precisely when the analog base is low, or the comparison period saw a\nhasty decline. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Anti-evasion_moves_that_have_contributed_to_higher_GST_revenue\"><\/span>Anti-evasion moves that have contributed to higher GST\nrevenue<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Apart from the \u201cbase effect\u201d and\nhigher economic growth, actions like anti-evasion undertaking, including\ndetecting the occurrence of fake input tax credit and action against deceitful\nbillers, employment of data analytics evasion have contributed to higher\ncollections.<\/p>\n\n\n\n<p>Regardless of this extraordinary\ngrowth, the revenue collection of some States was still below the first quarter\nof Financial Year 20-21, which was more or less an average year. Many states\nhave overshot the collection of Quarter 1 of Financial Year 20-21. Also, few\nstates have lost growth in GST collection for one year. Among the speedsters,\nKerala is the only major State with a massive revenue shortfall of \u20b9563 crores\nin Quarter 1 of Financial Year 21-22 compared to Quarter 1 of Financial Year\n20-21.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Statistics_of_Past_financial_year_related_to_GST_revenue_collection\"><\/span>Statistics of Past financial year related\nto GST revenue collection<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>States Gujarat, Haryana, <em><strong>Maharashtra<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Maharashtra\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>, Odisha, Telangana, West Bengal, Karnataka, and Punjab have comfortably surpassed Quarter 1 of Financial Year 20-21 collection by a margin of \u20b9500 crores or more in Quarter 1 of Financial Year. Note that this astronomical figure of 98% state indicates a stronger recovery despite Covid-19 second wave, which was much more severe in India.<\/p>\n\n\n\n<p>This didn\u2019t exactly strike the\neconomy back, but it slowed it down. At the same time, the GST collection\ncovered around 50 % in May 2021 as compared to April 2021. Further, growth in\nJune 2021 boomed back for most of the States. Hence, the first-quarter growth\nis by no means a less remarkable feat.<\/p>\n\n\n\n<p>Although growth in GST Revenue\ncollection has revived for most States, one year of negative growth in the GST\ncollection has had a severe consequence on GST compensation. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Compensation_provided_to_the_states_having_GST_revenue_shortfall\"><\/span>Compensation provided to the states\nhaving GST revenue shortfall<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the Goods and Services\n(Compensation to States) Act, 2017, States at a loss are Constitutionally\nguaranteed to get compensation on account of the introduction of the GST for\nfive years from the date of implementation, i.e., July 2017 to July 2022. <\/p>\n\n\n\n<p>Before the Covid-19 pandemic,\nStates had revenue shortages, and this aggravated after the pandemic.\nConclusively, the compensation conditions increased sharply due to the lower\ncollection of GST and the Compensation Cess. <\/p>\n\n\n\n<p>On the contrary, The Union\ngovernment has also been falling short of collection, and even more, the\ncollection of revenue from the GST compensation Cess were falling considerably\nshort of demand for the compensation amount.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While the increased number look strong, especially in the first quarter of financial year 2021-22, Latest data on GST collection indicates improvement in the economic activity. The Indian economy also recovered at a fast pace 21 % growth in the first quarter of 2021-22. The extensive GDP growth accompanied with anti-evasion measures to block GST leakages continued unsecured in various parts of the country and various profitable reforms announced by the government are expected to encourage this positive trend in GST revenue collection in the second half of the year.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/obtain-gst-registration-in-india\/\">How To Obtain GST Registration in India? <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In India, Goods and Services Tax is one of the primary sources of revenue for every State as it shares nearly one-third of their taxable income. GST is a destination-based consumption tax and is a good representative of the performance of a state\u2019s economy. Thus, the GST recovery also indicates the regaining of the State\u2019s [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":38395,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[2043],"acf":{"service_id":"132"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3003,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/38367"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=38367"}],"version-history":[{"count":34,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/38367\/revisions"}],"predecessor-version":[{"id":38402,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/38367\/revisions\/38402"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/38395"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=38367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=38367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=38367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}