Ahmedabad: when the industrial production has returned to a full throttle after the second wave of Covid cases with a massive increase in raw material prices in all sectors, the GST collection in Gujarat grew by 28% in September 2021 against the same month in 2020.
Total collection of GST In the state standing at Rs 7,780 Crore in September, up from RS 6,090 Crore in September 2020, according to data from the Ministry of Finance Union.
Experts said the increase in tax collection was mainly due to the revival of demand and low last year, because tax collection was relatively low due to post-locking effects.
JP Gupta, commercial tax commercial commissioner, said, “Demand has shown revival during the past few months and because this economic and commercial activity has increased.
Industrial production has increased to meet the demand for goods that increase and therefore the number of tax collections.” ” In running to the celebration season, we anticipate further surge in tax collection supported by greater demand.
In addition, the generation of e-way bills increased by 5% from August, which showed a greater movement of goods, “Gupta added.
Of the total collection, State GST (SGST) in Gujarat stands at RS 3,654 Crore this September, up 47.5% from RS 2,415 Crore last September.
Tax collection, however, grew a little, by 3.5%, against the August 3,530 crore rs, according to the numbers of the commercial tax department of the country.
Industry players link an increase in collections not to demand their own resurrection but also with rising raw material prices and important commodities.
Patik Patwari, Senior Vice President, Gujarat Chamber of Commerce and Industry (GCCI) said “Domestic activities have shown a large increase in the last 45-60 days.
The price of all important commodities has increased over the past year with the price of steel and plastic multiple and cement, materials Chemistry and other raw materials who witness a price increase of 50%.
This has had an impact on the price of finished goods and can also trigger an increase in a collection of taxes.
“Industrial estimates show that clothes and cars, clearly see a surge in prices.
“Demand for these products grows in front of the celebration season.
Overall, businesses for restaurants and entertainment industries also increase, because the rebound is expected,” said Patwari.