Sumary of Indirect tax mop-up exceeds Revised Estimate by 9%:
- The Centre indirect tax collection during fiscal year 2020-21 (FY21) has exceeded not just the Revised Estimate but also actual collection of fiscal year 2019-20 (FY 20)..
- However, experts feel that growth in collection may slow down a bit during FY21 on account of local lockdowns and curfew imposed by many States..
- M Ajit Kumar, Chairman of Central Board of Indirect Taxes and Customs (CBIC), wrote in his weekly correspondence with all his officers and staff..
- On April 1, the Centre announced that the overall GST collection (CGST, SGST, IGST and Compensation Cess) reached all time high of nearly ₹1.24-lakh crore in March..
- Second Covid-19 wave The government expects recovery to continue and tax collection would be better this fiscal..
- However, as the second wave of pandemic forcing many States to go for localised curbs, including mini lockdowns and night curfews, there is fear that recovery might be affected and hit tax collection too..
- “The renewed jump in Covid-19 infections in certain parts of the country and the associated localised lockdowns could dampen the demand for contact-intensive services, restrain growth impulses and prolong the return to normalcy.”.
- “The recent surge in Covid-19 infections adds uncertainty to the domestic growth outlook amidst tightening of restrictions by some state governments….