GST collection slips over 14% to Rs 87,422 crore in July
In July 2019, the GST revenue was over Rs 1.02 lakh crore
New Delhi: The country's GST collections declined to Rs 87,422 crore in July from Rs 90,917 crore in the previous month, a finance ministry statement said on Saturday.
The July collections, however, are higher than Rs 62,009 crore goods and services tax (GST) mopped up in May and Rs 32,294 crore in April.
Year-on-year, the July 2020 collections are 86 per cent of the revenues mopped up in the same month last year.
In July 2019, the GST revenue was over Rs 1.02 lakh crore.
"The gross GST revenue collected in the month of July 2020 is Rs 87,422 crore, of which CGST is Rs 16,147 crore, SGST is Rs 21,418 crore, IGST is Rs 42,592 crore (including Rs 20,324 crore collected on import of goods) and cess is Rs 7,265 crore," the statement said.
During the month, GST revenues of all major states were down in the range of 15-20 per cent over July 2019.
The ministry further said although the June collections were higher than that in July, 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.
It may also be noted that the taxpayers with turnover less than Rs 5 crore continue to enjoy relaxation in filing of returns till September 2020.
PwC India Partner and Leader Indirect Tax Pratik Jain said June and July data reveal that broadly the collections are stabilising between 85 to 90 per cent of the corresponding period last year.
This is also collaborated with number of E-way bills being generated on a daily basis, which indicates that supply chain is getting back to normal though imports still seem to be lower than domestic output.
"Overall, this augurs well for the government and collections are likely to improve further as lockdown is eased progressively. Industry can perhaps hope for some more GST relief, particularly in form of liquidity support as they navigate through the slowdown," Jain added.
EY Tax Partner Abhishek Jain 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," he said.
Shardul Amarchand Mangaldas Partner Rajat Bose said hopefully, this trend (of GST collections) should continue in the coming months, especially since festive season has started in the country.