The Goods and Services Tax (GST) revenue surpassed Rs. 1.05 lakh crore (Rs1.05 trillion) in October 2020, up 10 percent from a year ago, and the highest recorded since February 2020.
- This is first time the GST inflows has crossed the Rs 1 lakh crore mark in the current financial year (2020-21) as a ‘clear’ sign of a recovery in the economy after its 23.9% contraction in the first quarter of this year.
- As per data released by the Finance Ministry on November 1, 2020, the gross GST revenue collected in October was Rs. 1,05,155 crore, 10.25 percent higher than a year ago, and 10.1 percent more than the indirect tax revenue garnered in the month of September 2020.
What is GST?
- According to the Article 366(12A) of the Constitution of India, “Goods and services tax” means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption.
- The GST act was enacted in August 2015 through 101th amendment to the Constitution of India.
- GST was launched on July 1, 2017.
Main features of the GST are:
- Concurrent jurisdiction for levy & collection of GST by the Centre & the States –Article 246A
- Centre to levy & collect IGST on supplies in the course of inter-State trade or
- commerce including imports – Article 269A
- Compensation for loss of revenue to States for five years on recommendation of GSTC – Clause 19.
- GST on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas & aviation turbine fuel to be levied from a later date on recommendations of GSTC.
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