Kerala has recorded a 31% increase in Goods and Services Tax (GST) collection during August 2021 over August 2020.
Data released by the Union Finance Ministry show that the GST collection stood at ₹1,612 crore last month. It was ₹1,229 crore in August 2020. Last month’s collection is, in fact, higher than the pre-COVID-19 revenue of ₹1,582 crore in August 2019, reveal the State-wise data for that month.
That said, the collection in August this year is lesser than that in July (₹1,675 crore).
Commenting on the 31% increase recorded last month over August 2020, Finance Minister K.N. Balagopal said that it remained to be seen whether it was sustainable.
Whether this growth reflected an abrupt surge in economic activity after a three-to-four-month, pandemic-induced slowdown needed to be examined. If the present momentum was kept up, the economy could revert to pre-COVID-19 levels at a faster rate, Mr. Balagopal said here on Thursday, replying to queries at a meet-the-press programme organised by the Kerala Union of Working Journalists.
Notwithstanding the financial situation, the State government would ensure adequate resources for the Kerala Infrastructure Investment Fund Board (KIIFB) so that loan repayment and other responsibilities were not hit, Mr. Balagopal said.
GST council
The State would press for the extension of the GST compensation period by another five years at the upcoming meeting of the GST Council on September 17.
Mr. Balagopal reiterated that the Centre, which was bolstering its revenues through the collection of petroleum cess, had been denying the States’ their fair share of the revenues. “It requires serious debate on how the States can move forward in such a situation. There is a need for States to stand united to protect their interests,” he said.
Despite the financial crunch, the State government has managed to disburse a total of ₹9,018 crore during the Onam season by way of bonus and allowances, welfare pensions, assistance, and the free kits, he said.
