GST collections: Decoding the fall in June mop-up

GST collection slipped below Rs 1 lakh crore in June for the first time in eight months as the second wave of the Covid pandemic and the resultant lockdowns hit businesses and the economy.

At Rs 92,849 crore, the goods and services tax (GST) collection is the lowest in 10 months since August 2020, when it was Rs 86,449 crore, official numbers released Tuesday showed.

On Money9, senior journalist Avijit Ghoshal explains what the dip in the GST collections means for the economy. “While the monthly collection had come below the Rs 1 lakh crore mark after a long time, I believe the Rs 1 lakh crore mark is just a psychological mark,” says Ghosal.

“The GST collection for June 2021 is related to the business transactions made during May 2021. And May saw the worst of the Covid infections across the country,” he added.

However, Ghosal remains optimistic and believes that the GST collections for the month of August will see a rise.

Watch the entire conversation to know more…