BackJune GST receipts signal economic recovery
Gross GST receipts for June was 9% below the ₹1 trillion collected in the same month a year ago, but was sharply higher from what was collected in the previous two months.
PremiumNew Delhi: Central and state governments collected ₹90,917 crore as Goods and Service Tax (GST) revenue in June, signalling a strong rebound in economic activities, after the coronavirus crisis had depressed collections severely in the previous two months.
Bihar, which saw a massive return of migrant workers during the pandemic, reported a 16% jump in receipts from the consumption-based tax in June from a year ago, although it was on a small tax base compared to that of larger state economies. States like Himachal Pradesh and Uttarakhand known for their tourist destinations, reported sharp fall in GST receipts during the same time.
Data released by the finance ministry showed that gross GST receipts for June was 9% below the ₹1 trillion collected in the same month a year ago, but was sharply higher from what was collected in the previous two months.
Data showed collections in April had languished at ₹32,294 crore, a fall of 72% from the same month a year ago, indicating that the economic slowdown and national lockdown that kicked in from the fag end of March had a strong impact on revenue receipts. But in May, collections improved to ₹62,009 crores, reducing the contraction to about 38% from the year ago period as supply of essential goods remained mostly unaffected during the lockdown.
GST receipts in June got impacted as revenue from merchandise imports took a 29% hit. The relaxation in the schedule for tax return filings meant that some of the returns to be filed in June for the previous month’s sales will now get reported early in July.
“The GST collections for the first quarter of the year is 41% less than the revenue collected during the same quarter last year. However, a large number of taxpayers still have time to file their return for the month of May, 2020," said an official statement from the ministry. (ends)
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