The Goods and Services Tax (GST) collection, a tax on consumption, has shown the first signs of improvement in business activities, with the outbreak of the Kovid-19 epidemic and 4% year-on-year increase since March 25. Official figures said that Rs 95,480 crore in September and a jump of 10.4% over the previous month.
Interestingly, according to data released on Thursday by the Union Finance Ministry, GST collection in Maharashtra in September this year stood at Rs 13,546 crore in the same period last year. Karnataka saw a 5% contraction (Rs 6,050 crore) in the period.
Other major industrial states have shown positive revenue growth in September this year over the same period last year. Tax collections from Haryana (Rs 4,712 crore) and Tamil Nadu (6,454 crore) jumped 15%, while Gujarat increased by 6% to Rs 6,090 crore.
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Experts say the worst is over and the collection is expected to grow in the coming festival months based on the unlockdown steps taken by various states. MS Mani, senior director of consultancy firm Deloitte India, said, “A modest 4% increase in GST collections over the previous year indicates that the process of economic recovery is underway, with some major big states also reporting increased collections has gone.”
GST collection increased for the first time after contraction for six consecutive months. This year saw a decline in indirect tax collections since March (8.4%), falling 72% to Rs 32,172 crore in April, the lowest since its launch on 1 July 2017. The 68-day tough lockdown from March 25 was also reflected in the May collection with a 38% annual decline (Rs 62,151 crore). However, the decline in revenue slowed to 9% in June (mainly Rs 90,917 crore), mainly on receipts for the lockdown period. Subsequently, annual revenue collections fell 14.3% (Rs 87,422 crore) in July and 13% (Rs 86,449 crore) in August.
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He said, ‘The gross GST revenue in September 2020 is Rs 95,480 crore. [Central GST] 17,741 crores, SGST [State GST] 23,131 crore, IGST is [integrated GST] The Finance Ministry statement said that Rs 47,484 crore (Rs 22,442 crore collected on import of goods) and Cess 7,124 crore (including Rs 788 crore) are included.
The government has given Rs 21,260 crore to CGST and Rs 16,997 crore from IGST to SGST as regular settlement. It stated that in September 2020, the central government and the state governments, after regular settlement, earned Rs 39,001 crore for CGST and Rs 40,128 crore for SGST.
“During the month, revenue from import of goods was 102% and revenue from domestic transactions (including import of services) was 105% of revenue from these sources during the same month last year.”
Abhishek Jain, tax partner at consultancy firm EY India, said, “With a significant portion of the pace of the economy resuming and international trade resuming, collections have seen good growth. Increased revenue indicates a return to normalcy in business operations and provides a general optimistic view. ”
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