Goods and services tax collections rose for the sixth successive month in February, while higher e-way bills for the month pointed to collections remaining firm in March as well.
Total GST revenue was ₹1.13 lakh crore in February, 7% higher than a year earlier and a tad lower than ₹1.2 lakh in January after a fresh increase in Covid-19 cases dented collections in some states.
E-way bills for February were at 63.8 million, marginally higher than 62.8 million in January, but higher than 57.1 million a year earlier, as per GST Network data.
Rail freight increased last month, with loading up 10% on-year at 112.25 million tonnes.
“This is a clear indication of the economic recovery and the impact of various measures taken by tax administration to improve compliance,” the revenue department said in a statement Monday.
February was the fifth straight month of collections exceeding ₹1 lakh crore and the third month in a row crossing the ₹1.1 lakh crore mark.
Earnings from freight loading were Rs 11,096.89 crore in February, which was 7.7% higher than Rs 10,305.02 crore in February 2020.
Tax experts pitched for GST rate rationalisation. “It is expected that the trend would continue as we approach the financial year end and audits become more rigorous… this should give much needed confidence to the government to consider rate rationalisation,” said Pratik Jain, partner, indirect tax, at PwC India.
Of the gross GST revenue of ₹1.13 lakh crore collected in February, Central GST was ₹21,092 crore, state GST ₹27,273 crore and integrated GST ₹55,253 crore, including ₹24,382 crore collected on import of goods. Compensation cess was ₹9,525 crore, which included ₹660 crore collected on import of goods.
The government has also settled Rs 22,398 crore to CGST and Rs 17,534 crore to SGST from IGST as regular settlement.