The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper
Search
+

    GST collection at Rs 86,449 crore in August

    Synopsis

    The government has settled Rs 18,216 crore to CGST and Rs 14,650 crore to SGST from IGST as regular settlement.

    COVID-19 Impact: GST collections drop 12% Rs 86,449 crore in August
    Goods and service tax (GST) collections for August stood at Rs 86,449 crore, the finance ministry said on Tuesday. The collections were nearly 12% lower than Rs 98,202 collected in the same month last year, and more than 1% down compared to July 2020.

    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.

    The government has settled Rs 18,216 crore to central GST and Rs 14,650 crore to state GST from IGST as regular settlement. The total revenue earned by central and state governments after regular settlement comes to Rs 34,122 crore for CGST and Rs 35,714 crore for the SGST, in August. "A significant part of the dip is attributable to imports, which has witnessed a decline with the impact on international trade with this pandemic,” said Abhishek Jain, tax partner at EY. Domestic collections having attained 92% year-on-year for operations in July is a sign of economic recovery post lifting of the lockdown," he added. Ends.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    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.
    The Economic Times