Of the total amount, central GST was Rs 15,906 crore, state GST Rs 21,064 crore and integrated GST was Rs 42,264 crore, which included Rs 19,179 crore on import of goods. The cess collected for August stood at Rs 7,215 crore, including Rs 673 crore collected on import of goods. The finance ministry said that during the month, the revenues from import of goods were 77% and the revenues from domestic transactions (including import of services) were 92% of the revenues from these sources during the same month last year.
It added that taxpayers with turnover less than Rs 5 crore continue to enjoy relaxation in filing of returns till September. Experts said that the numbers were in sync with the economy which is seeing contraction in the gross domestic product (GDP) whereas mini-lockdowns were continuing to control the spread of the Covid 19 pandemic. “It is logical to expect decline in GST numbers, which is in sync with contraction in GDP and reduced economic traction. Weekend lockdowns in few States, labour shortage, supply chain bottle-necks, import restrictions, non-filing of returns by small taxpayers etc. appear to be the key contributing factors,” said Harpreet Singh, partner of indirect taxes at KPMG India said.
Experts also pointed to the far sharper fall of about 15% in collections last year – Rs 1.02 lakh crore in July 2019 versus Rs 87,422 crore in August 2019 – which when compared with the present year’s collections showed improving signs of stability in the economy. “The numbers seem to be stabilizing and are expected to be in this range at an average for the next six months atleast,” said Rajat Bose, partner at Shardul Amarchand Mangaldas & Co law firm.
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4 Comments on this Story
Praveen Nayak49 days ago
hope it increases next month
Gopalan Arunachalam50 days ago
It indicates that the impact of lockdown is decelerating.Hope the economy will be on right track by Dasera/ Diwali. Let us be optimistic. Gopalan Arunachalam.
Ravie Gupta50 days ago
this appears to be largely impacted due to lower imports. automobile industry numbers for August are largely positive. there appears to be v / u shaped recovery in this sector.