Upsurge in GST collections unlikely to sustain beyond November 2020

by Nidhi Bhati

Experts have cautioned about over-interpreting the Goods and Services Tax (GST) collection numbers and said their sustainability needed to be watched beyond November 2020, as per a report in Business Standard. GST collection crossed Rs.1 trillion for the first time in eight months in October 2020. ICRA’s Principal Economist Aditi Nayar said that the uptick in GST collection in recent months appeared to have benefited from pent-up demand, the building up of inventories before the festive season and e-invoicing. However, she remains circumspect about the durability of the spikes being seen in various sectors and therefore of healthy headline GST collection after November. According to Deloitte India’s Partner M S Mani, current and the next month are expected to be robust from the GST collection standpoint due to pent-up demand and the festive season. However, he added that collection would depend on the pace of revival of economic activities, business conditions and the impact of the next phase of e-invoicing rollout.