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Monday, August 03, 2020

Consumption, imports slump: GST collections fall 14.4% to Rs 87,422 crore in July

Of the total Rs 87,422 crore collected in July, Central GST is Rs 16,147crore, State GST is Rs 21,418 crore, Integrated GST is Rs 42,592 crore (including Rs 20,324 crore collected on import of goods) and cess Rs 7,265 crore.

By: ENS Economic Bureau | New Delhi | Published: August 2, 2020 12:13:57 am
gst, goods and service tax, gst squad from vadodra, gst squad raid in vadodra, vadodra firms booked, vadodra firms booked for not paying tax, indian express news Cumulatively, the GST revenues have recorded a 34.5 per cent decline during April-July (for sales in March-June).

Gross Goods and Services Tax (GST) collections declined 14.4 per cent to Rs 87,422 crore in July (for sales in June), reflecting the consumption and imports slump due to COVID-19 pandemic, data released by the Finance Ministry on Saturday showed. The collections were also 3.8 per cent lower than Rs 90,917 crore collected in June.

The GST revenue reflected a pick-up in June amid easing of lockdown but it was mainly due to delayed payments from previous months as return filing deadlines were extended. Cumulatively, the GST revenues have recorded a 34.5 per cent decline during April-July (for sales in March-June).

“The revenues for the last month were higher than the current month. However, it is important to note that during the previous month, a large number of taxpayers also paid taxes pertaining to February, March and April 2020 on account of the relief provided due to COVID-19,” the Finance Ministry statement said.

Taxpayers with turnover less than Rs 5 crore continue to enjoy relaxation in filing of returns till September 2020, it added.

The GST revenues in July are 85.6 per cent of the same month last year, of which the revenues from the import of goods were 84 per cent and the revenues from domestic transactions (including import of services) were 96 per cent compared with last year.

Of the Rs 87,422 crore collected in July, Central GST is Rs 16,147crore, State GST is Rs 21,418 crore, Integrated GST is Rs 42,592 crore (including Rs 20,324 crore collected on import of goods) and cess is Rs 7,265 crore. The government settled Rs 23,320 crore to CGST and Rs 18,838 crore to SGST from IGST as regular settlement, after which the total revenue earned by Centre is Rs 39,467 crore as CGST and for states if Rs 40,256 crore as SGST. Detailed break-up for GST collections raised in various states showed that barring Rajasthan, Madhya Pradesh, Nagaland and Andhra Pradesh most states recorded a decline in GST collections in July.

Abhishek Jain, tax partner, EY said, “A collection approximate to 86 per cent of last year does showcase quite a significant economic recovery from the pandemic though a bit of it could be on account of pent up demand. With economic activities increasing, the collections should hopefully witness aligning with estimates soon.” MS Mani, partner, Deloitte India said, “The progressive unlockdown steps taken by various states in June are reflected in the improvement in GST collections for July although the figures also includes some transactions in respect of earlier months…the collections in many of the major states coming close to last year’s collections indicates that the recovery process has slowly started with the unlockdown process underway in these states.”

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