Economy

GST revenue falls 12% in August at ₹86,449 cr

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Goods and Services Tax revenue in August stood at ₹86,449 crore, just over 1% lower than the ₹87,422 crore collected in July. On a year-on-year basis, GST collections dropped 12% from August 2019, according to data released by the Finance Ministry on Tuesday.

Also read: GST revenues fall 41% in first quarter

State-wise data shows that Uttar Pradesh and Rajasthan have posted a marginal increase in collections, while Haryana and Gujarat saw a marginal decrease. Major States that are still showing a significant drop include Maharashtra, West Bengal and Tamil Nadu and Karnataka.

Also read: July GST revenue slides 14%

Overall, revenues from import of goods dropped 23% from the previous year, while revenues from domestic transactions dropped 8%. The Ministry noted that small businesses with a turnover less than ₹5 crore have till September to file returns.

“Coming after the disappointing GDP data for the first quarter yesterday, these figures indicate that collections are on the recovery path in the first month of the second quarter. The collections on domestic transactions are just 8% lower than the same month last year, indicating a revival of economic activities post lockdown,” said M.S. Mani, partner at Deloitte India.

"A significant part of the dip is attributable to imports, which has witnessed a decline with the impact on international trade with this pandemic,” added Abhishek Jain, Tax Partner at EY India.

An earlier version mentioned that Rajasthan saw a marginal decrease in GST collection. This has been corrected online.

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Printable version | Oct 22, 2020 9:01:20 PM | https://www.thehindu.com/business/Economy/gst-revenue-falls-12-in-august-at-86449-cr/article32499024.ece

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