GST collection reduced by 70 per cent in April
Economic activity has come to a complete standstill due to the lockdown across the country. However, there is a partial relaxation in the fourth phase of lockdown. But, its impact on the GST collection is being seen. Almost all types of businesses have been affected due to the lockdown implemented from March 25 due to coronavirus. Hence, the GST collection has also been affected. The collection of Goods and Services Tax (GST) declined in April this year. Data released by the CGA showed that GST collections declined by up to 70 percent in April.
Let us know that this data released for April 2020 shows that the Centre’s share in GST collection during this month was Rs 16,707 crore, which was 70% less than the previous year’s Rs 55,329 crore. The GST, usually declared by the government, consists of a collection of both the Center and the states. However, the CGA data showed only the Centre’s share of the GST collection. Earlier, in April 2019, the share of both the Center and the states in the GST collection was Rs 113,865 crore.
While estimating the GST number of the Center (Rs 16,707 crore) for April 2020, the total GST collection (Center and State) could be around Rs 34,300 crore. It is speculated that such a large decline in the GST collection in April 2020 may be due to the lockdown imposed due to the Coronavirus epidemic. However, it should be noted that the GST collection for April is based on March transactions and the lockdown began on 25 March. The fall in collections in April may, therefore, be due to the extension of return filing dates.
On 24 March, the government made several announcements to reduce the burden on taxpayers in view of the outbreak of the Coronavirus. It was said in these announcements that companies whose turnover is less than five crore rupees, will not have to pay any late fee even for the late filing of GST. Also, there will be no penalty for them. Those whose turnover is five crore or more can file returns till the last week of June. However, a 9% interest rate will have to be paid.