NEW DELHI: After showing signs of some revival in June, India’s Goods and Services Tax (GST) collection dipped again in July to Rs 87,422 crore—14 per cent lower than last year’s numbers and far below the generally accepted comfort mark of Rs1 lakh crore. GST collection during the month of May had stood at Rs90,917 crore. July’s collections stand at 86 per cent of the GST revenues recorded in the same month last year. In July 2019, the government’s GST mop up was Rs 1.02 lakh crore. Of the Rs87,422 crore collected in July, Rs16,147 crore was collected as Central GST, Rs 21,418 crore as State GST, Rs42,592 crore (including Rs20,324 crore collected on import of goods) as IGST and Rs7,265 crore (including Rs807 crore collected on import of goods) as Compensation Cess, the Ministry of Finance said. The maximum decline in July collections was seen in Uttarakhand, Delhi, Haryana, Jharkhand, Tamil Nadu, Maharashtra, Jammu and Kashmir and West Bengal.
States such as Rajasthan, Nagaland, Madhya Pradesh and Andhra Pradesh have either shown growth in GST collections or have maintained levels the same as 2019. “The revenues for the last month were higher than the current month. However, it is important to note that during the previous month, a large number of taxpayers also paid taxes pertaining to February, March and April 2020 on account of the relief provided due to COVID-19. It may also be noted that the taxpayers with turnover less than Rs5 core continue to enjoy relaxation in filing of returns till September 2020,” the revenue department said.
The government said it has settled Rs23,320 crore to CGST and Rs18,838 crore to SGST from IGST as part of the regular settlement. The total revenue earned after regular settlement in the month of July 2020 was consequently Rs39,467 crore for CGST and Rs40,256 crore SGST.