Record GST collection indicates economic recovery: Finance Secretary

The record-high collection of Goods and Services Tax (GST) was because the economy is on the path to recovery, Finance Secretary Ajay Bhushan Pandey told CNBC-TV18.

Pandey told the news channel that the data gives confidence and hints at economic revival, particularly since GST collection is usually low in December.

"GST collections recorded in the month of December have been better than previous trends. Also, income tax collections are also showing a sign of revival," Pandey said.

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In December 2020, GST collection rose 11.6 percent year-on-year to Rs 1.15 lakh crore, the highest ever monthly revenue since the system was implemented in July 2017.

Direct tax collections are 9.9 percent lower in Q3FY21, compared with the past three quarters, and the downward gap was narrowing, Pandey said.

The finance secretary said Q2 direct tax collections were down by 21-22 percent.

Pandey also shared some insight into the upcoming Budget, which will be presented on February 1.

"We have gone through a difficult situation (because of pandemic). We have seen signs of improvement and through various ‘Aatmanirbhar Bharat’ packages, the government has tried to do everything possible to address the sectors which need assistance, stimulus or any other interventions and that approach will have to be continued," he said.