GST collections fall to Rs 87,422 crore in July; FinMin explains why June revenue was higher

GST collections fall to Rs 87,422 crore in July; FinMin explains why June revenue was higher

GST collections fall to Rs 87,422 crore in July; FinMin explains why June revenue was higherIn the previous month, the government had collected Rs 90,917 crore.

The Goods and Services Tax GST collection in July 2020 has fallen to Rs 87,422 crore which is lesser than both the July collections last year and the revenue collected last month. In the previous month, the government had collected Rs 90,917 crore, according to a finance ministry statement. Explaining why June collections were higher, the ministry said that during the previous month, a large number of taxpayers also paid taxes pertaining to February, March and April 2020 as the government had provided a relief period on the account of ongoing coronavirus pandemic. Further, taxpayers who have a turnover of less than Rs 5 crore also enjoy a relaxation in filing of returns till September 2020, which may have also impacted this month’s revenue.

“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,” a finance ministry statement said. The revenues collected this month are 86% of the GST revenues collected in the same month last year.

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These states showed growth in GST collections

While majority of the states reported a fall in revenue on-year, only three states have shown a growth in revenue collection in July. This includes Rajasthan which has posted a 4% growth in collection, Nagaland has reported 11% growth and Meghalaya has shown an increase of 15% jump in revenue collection. Arunachal Pradesh has reported the worst fall in collection with a 32% drop in GST collections.

In June, the government had clocked Rs 90,917 crore at gross levels in Goods and service tax (GST), which was a 9% drop from the same month last year, the department of revenue said. Even then, the June collection was higher than those recorded in April and May, the months when the nationwide lockdown was at its strictest due to the Covid 19 pandemic.

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