GST collection fell 1% in August 2020 over the previous month

The finance ministry said the decline is also due to the fact that many small businesses have not filed their monthly returns.
The GST collection in August 2020 is 88% of the revenue collected in the same month last year, the finance ministry said in a statement on Tuesday.(PTI PHOTO.)
The GST collection in August 2020 is 88% of the revenue collected in the same month last year, the finance ministry said in a statement on Tuesday.(PTI PHOTO.)
Updated on Sep 01, 2020 07:01 PM IST
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Hindustan Times, New Delhi | ByRajeev Jayaswal | Edited by Sohini Sarkar

The Goods and Services Tax (GST) collection in the month of August fell a little over 1% at Rs 86,449 crore compared to Rs 87,422 crore collected in the previous month, while the revenue mop up in August this year saw a 12% year-on-year decline due to the Covid-19 pandemic and consequent lockdowns that had a devastating impact on the economy.

The GST collection in August 2020 is 88% of the revenue collected in the same month last year, the finance ministry said in a statement on Tuesday. The GST collection in August last year was Rs 98,202 crore.

The finance ministry said the decline is also due to the fact that many small businesses have not filed their monthly returns. “It may also be noted that the taxpayers with turnover of less than Rs 5 crore continue to enjoy relaxation in filing of returns till September,” the statement said.

“During the month [August 2020], the revenues from import of goods were 77% and the revenues from domestic transaction (including import of services) were 92% of the revenues from these sources during the same month last year,” it said.

Out of the gross revenue of Rs 86,449 crore in August 2020, the Central GST (CGST) part is Rs 15,906 crore, State GST (SGST) is Rs 21,064 crore, Integrated GST (IGST) is Rs 42,264 crore (including Rs 19,179 crore collected on import of goods) and cess is Rs 7,215 crore, it said.

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

“The total revenue earned by the Central Government and the state governments after regular settlement in the month of August, 2020 is Rs 34,122 crore for CGST and Rs 35,714 crore for the SGST,” it said.

GST collection was badly hit in the beginning of the current financial year due to the 68-day hard lockdown across the country since March 25, which was imposed to check the spread of Covid-19. The collection in April 2020 had plunged 72% to Rs 32,172 crore compared to the same month last year.

The collection had seen an annual fall of 38% in May 2020 at Rs 62,151 crore. The year-on-year fall in June this year came down to 9% at Rs 90,917 crore, mainly because of collection of past dues. The revenue in July 2020, however, saw a 14.3% year-on-year drop at Rs 87,422 crore.

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Wednesday, January 19, 2022