GST collections Slip Below the Rs 1.5-trn mark in May

Current Context: It is been expected that the collection of goods and services tax (GST) will be Rs 1.5-trillion level in May, but it has recorded as Rs 1.41 trillion in May which is 16% lower than the record collection of Rs 1.68 trillion in April.

• As per Govt Data, the collection in May is, however,44% higher than Rs 97,821 crore a year ago and also May is still the fourth-highest since the beginning of GST in July 2017.
• The reason behind the sudden fall as explained by the finance ministry is the first month of the financial year, has always been lesser than that of April, which pertains to the returns for March, the closing of the financial year.
• Maharashtra contributed the most to GST collections.
• The total revenue after settlements is Rs 52,960 crore for CGST and Rs 55,124 crore for the SGST. In addition, the Centre has also released GST compensation of Rs 86,912 crores to states which were pending.
• The revenue from imports of goods was 43% higher than the corresponding month last year. Collections from domestic transactions were 44% higher than the revenues from these sources in May 2021.

Question:

Q.1 By how much percentage the revenue of GST in May has fallen compared to the previous month i.e April of the same year?
a. 16%
b. 18%
c. 20%
d. 25%