Indirect tax collection throughout the Financial Year 2020-21 (FY 21) surpassed not just the revised estimate but also the actual collection of Financial Year 2019-20 (FY 20) as per the statement issued by the Finance Ministry. According to the statement, the Provisional Net Indirect Tax collections comprising of both GST & Non-GST for FY 21 exhibit growth of more than 12% compared to the actual Revenue Receipts in FY 20. The Net Indirect Tax collections represent 108.2% of the Revised Estimates of ₹9.89 lakh crore of Indirect Taxes for the FY 21.

 

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The provisional figures for indirect tax collections (both GST & non-GST) for the FY 21 registered growth of approximately 21% with the net revenue collections being at ₹10.71 lakh crore at FY21 in comparison to ₹9.54 lakh crore for the FY 20. Customs, net tax collections stood at ₹1.32 lakh crore during the period against ₹1.09 lakh crore during FY 20. Net Tax collections on account of Central Excise and Service Tax (Arrears) climbed to ₹3.91 lakh crore from ₹2.45 lakh crore, recording a growth greater than 59%. The net tax collections on account of GST of the Centre (CGST+IGST+ Compensation Cess) slid from FY 20’s actual collection of ₹5.99 lakh crore to ₹5.48 lakh, yet, it is higher than the revised estimate of 5.15 Lakh crore. Hence, the actual net GST collections are 106% of the total targeted collection but are 8% lower than the FY 20s collection.

According to the statement, the GST collections were seriously hit in the first half of the financial year on account of Covid-19. Nevertheless, in the second half, the GST collections registered healthy growth and the collections surpassed ₹1 lakh crore in each of the last six months. March saw an all-time high of GST collection at ₹1.24 lakh crore after very good figures in the month of January and February. Various actions taken by the Central Government helped in improving compliance in GST. The Finance Ministry last Friday announced that the net direct tax collection during FY 21 registered approximately 5% growth over the revised estimate. According to the Ministry, provisional figures showed a collection at ₹9.45 lakh crore, representing 104.46% of the Revised Estimates of ₹9.05 lakh crore, still, it is lower than the net direct tax collection of FY 20 which was ₹10.51 lakh crore.

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