Why have GST collections fallen so sharply for the month of May 2021?
Answer
Answer
You may have to blame it on COVID 2.0. You are right that May-21 GST collections were certainly tepid as the figure dropped to an 8-month low of Rs.102,000 crore. This can be attributed to the disruption of economic activity on account of the COVID-2.0. This is in stark contrast to the record level of Rs.141,000 crore in April 2021, although it could be bunching.
The May 2021 GST collections are 65% better on yoy basis, but that can be rather misleading due to base effect. The worry is that June numbers could be worse and even dip below Rs.100,000 crore if you go by the e-way bill generation data.