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GST collections may show negative growth into September, says GIFT study

GST collections may show negative growth into September, says GIFT study

Goods and Services Tax (GST) collections may likely witness a slow or even negative growth rate for at least six months from March due to the impact on Covid-19 on manufacture, business and consumption. An analysis of different scenarios reveal that GST revenue for the past 30 months has been uneven, volatile, indolent and far below official targets, point out KJ Joseph, N Ramalingam and L Anitha Kumary, faculty at the Gulati Institute of Finance and Taxation (GIFT), a think-tank in Thiruvananthapuram.

They said in a co-authored paper titled ‘GST Revenue of India and Kerala: Lessons from 30 months; Data and Suggestions to the 15th Finance Commission’ that the state of Kerala, known for its high consumption and heavily dependent upon other states for goods and services, expected more revenue from GST. But the experience from July 2017 till date has been less than assuring.

For the state, 19 out of the 30 months saw negative trends while the upward growth in the rest 11 reveals high volatility, due largely to receipt of ad hoc settlements.

 

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