GST collection reduced in July compared to June, Rs 87422 crore
GST collection reduced in July compared to June, Rs 87422 crore
GST collection declined in July as compared to June. The Finance Ministry said during a statement on Saturday that the gathering of products and Services Tax (GST) within the month of July has come down from Rs 90,917 crore in June to Rs 87,422 crore. However, the July collection is over Rs 62,009 crore in May and Rs 32,294 crore in April. The revenue from GST in July is 86 percent compared to an equivalent month a year ago. The GST collection stood at over Rs 1.02 lakh crore in July 2019
According to a press release from the ministry, ‘Gross GST revenue collection stood at Rs 87,422 crore in July 2020, with central GST at Rs 16,147 crore, state GST at Rs 21,418 crore and integrated GST at Rs 42,592 crore. The integrated GST includes a tax of Rs 20,324 crore collected on the import of products. 7,265 crore was received from the cess during the month. The GST collections of all major states during the month under review were 15-20 percent less than the year before.
The ministry said that although the July GST collection is above in June, it’s important to notice that an outsized number of taxpayers paid taxes associated with February, March, and April 2020 in June. Taxpayers were provided relief from GST payments in February, March, and April within the wake of the Coronavirus epidemic. It’s also important to notice that taxpayers with a turnover of but Rs 5 crore are allowed to file returns by September 2020.
PwC India Partner and Leader (Indirect Tax) Prateek Jain said that the figures for June and July show that GST collections are broadly at 85 to 90 percent levels compared to an equivalent period last year.
The basis of the e-way bill being issued on a day to day also indicates that the availability chain is returning to normalcy, although imports are still less than domestic production.
Jain said, ‘Overall, this augurs well for the govt. The gathering is probably going to enhance further with the frequent loosening of lockdown restrictions. The industry might expect some more relief in GST, especially within the sort of cash support as they’re browsing sluggishness. ‘
