InvestorQ : Is it true that the GST collections have gone up in the financial year 2021?
Khushi Patel made post

Is it true that the GST collections have gone up in the financial year 2021?

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Dhwani Mehta answered.
2 months ago
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Let me clarify here that it is the total indirect tax revenues that have gone up in the year while the GST collections have actually gone down. Let me explain. Indirect tax collections for FY21 were 12.3% up yoy Rs.10.71 trillion. This compares very favourably with the collection of Rs.9.54 trillion via indirect taxes in the financial year 2020. This is despite the fall in GST flows because that was made up by higher excise and customs collections.

You would recollect that when GST was introduced in July 2017 to subsume excise, service tax, sales tax, VAT and a host of other levies. However, customs duties was kept out and so was excise on liquor, petrol, diesel and a few others. FY21 saw net customs collections up 21% and net excise duty collections up 59% yoy. This is largely due to sharply higher levies on products like petrol and diesel that are outside of goods and services tax or GST.

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