THIRUVANANTHAPURAM: The second wave of Covid-19 pandemic and possible lockdown-like restrictions in different parts of the state are likely to dent the government’s GST earnings in the new fiscal. After the general lockdown, the revenue growth was almost restored to normal in the last quarter of 2020-21.
“March witnessed an 18 pc growth in GST, the second highest growth rate in the just-concluded fiscal. Only six months showed a positive growth in previous fiscal. Now we fear a similar situation as that during the start of previous fiscal. It may not be that bad but there would be a significant fall,” said a senior officer in the taxes department.
The pandemic spread in cities where most of the business activities happen is another matter of concern, he said. “Lockdown-like restrictions across the state will have an impact on trade and commerce. Unless the pandemic spread is brought under control, the situation will turn worse,” he said.In FY 21, GST revenue first showed an year-over-year growth in September - 11.32 pc.
In November however, there was a negative growth of 3.64 pc. December witnessed a jump to 20 pc.
In January, the collection dropped to 11.64 pc but was on the upward spiral in the succeeding months, 13.25 pc in February and 18.66 pc in March. The previous fiscal’s total collection stood at `17,620 crore, a nine percent fall from the revenue in 2019-20.