InvestorQ : Is it true that the government saw record GST collections in October 2020?
Riya Dwivedi made post

Is it true that the government saw record GST collections in October 2020?

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shrinidhi Rajan answered.
4 weeks ago
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I would not say it was record collections but this is the best we have seen in recent months. In fact, India GST collections are crossing the Rs.100.000 crore mark after a gap of over 8 months. To that extent, it is surely a positive signal on the macro front.

GST collections for the month of October 2020 registering Rs.105,000 crore. This is the first time in 8 months that GST figure got past the Rs.1 trillion mark. Eve mom a month-on-month basis, the finance secretary has confirmed that it was a 10% surge in collections.

The fact that the GST is above Rs.100,000 crore means that roughly corresponds with the pre-COVID levels of goods and services output. That is the feed we are getting from the core sector numbers too, but the backlog is already huge on the GST collections front.

To be fair, this may not drastically change the impact on the fiscal deficit which is still expected to be above 7% of GDP in this year. The GST is still likely to fall short of budgeted targets by 20-25% and that will have to be made up or compensated through other sources.

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