COURTESY HT JAN 2

GST revenue back on growth trajectory in Dec
Increase in revenue is being seen as a sign of improvement in business activity on the back of demand revival

Navneet Sharma

navneetsharma@hindustantimes.com

Chandigarh : After a negative revenue growth last month due to farmers’ rail blockade, the GST collection in Punjab is back on growth trajectory with a 6% year-on-year increase in December.

The increase in the state’s GST revenue, which ranged between 6% and 14% in three of the past four months after a declining trend since covid-19 outbreak and subsequent lockdown restrictions imposed in March 2020, is being seen as a sign of improvement in business activity on the back of revival of demand. December’s GST collection, including state goods and services tax (SGST) and integrated goods and services tax (IGST), is Rs 1,067 crore, up 5.8% from Rs 1,009 crore in the corresponding month of 2019, according to the indirect tax data that the Punjab taxation department has compiled.

Taxation commissioner Nikhil S Avhad said there is sustained economic recovery. “If numbers in recent months are any indication, this growth will continue,” he said. In September and October, Punjab’s GST mop-up reported growth of 8% and 14%, respectively. However, there was a decline of 4.9% year-on-year in November collection, amid farmers’ rail roko (train blockade) that had brought the movement of freight and passenger trains to a complete halt in the state. The ongoing dharna by farmers at Delhi’s borders has also, somewhat, affected the transportation of goods by road.

In the third quarter (October-December) of 2020-21, the goods and services tax collection of Rs 3,196 crore is up 4.4% from Rs 3,062 crore in the corresponding period of the previous fiscal.

The sectors contributing bulk of the revenue are services, iron and steel, automobiles and auto parts, cement and IT and communication products. In November, these sectors accounted for more than 40% of the revenue. Rising prices of iron and steel have also contributed to increased collection. Overall, the GST revenue is still down by 20% this year. VAT collection, on the other hand, continues to see a robust growth year-on-year.

Though lower than the previous month, the VAT revenue, collected mainly from petroleum products, in December is up by 30.3% year-on-year. Against Rs 502 crore in December 2019, the state collected Rs 654.5 crore last month. The increase in petrol and diesel rates prices has also added to the government’s kitty.

In November 2020, the VAT collection was Rs 747 crore with a massive 73% jump over the corresponding month of 2019.

In 2020-21, VAT collections have zoomed by 41% from Rs 1,360 crore of in previous fiscal