July GST Collection Falls Over 14% to Rs 87,422 Crore

July GST Collection Falls Over 14% to Rs 87,422 Crore

Any fall In tax collections increases the risk of fiscal slippage

The government collected GST or Goods and Services Tax stood at Rs 87,422 crore last month, data from the Finance Ministry’s Department of Revenue showed on Saturday. That marked a decline of 3.84 per cent compared to June, and 14.36 compared to July 2019. The government had collected Goods and Services Tax of Rs 90,917 crore In June 2020 and Rs 1,02,083 crore In July 2019. Out of the total gross revenue collected In July, CGST or central goods and services tax accounted for Rs 16,147 crore, SGST (state goods and services tax) Rs 21,418 crore and IGST (integrated GST) Rs 42,592 crore (including Rs 20,324 crore collected on imports), according to the official statement.

Total revenue earned by central and state governments after regular settlement during the month stood at Rs 39,467 crore In case of CGST and Rs 40,256 crore In case of SGST, the statement added. The revenues were 86 per cent compared to the corresponding period last year.

Any fall In tax collections increases the risk of fiscal slippage at a time when the country’s already-slowing economy is the struggling against the coronavirus pandemic and the consequential months-long lockdown.

In June, a large number of assessees paid taxes pertaining to the February-April period on account of the relief provided due to the COVID-19 pandemic, the revenue department said.

In the first four months of current financial year (April-July), the government’s collection of Goods and Services Tax declined 34.48 per cent to Rs 2,72,662 crore compared to the year-ago period, official data showed.