News

GST collections dwindle again in August; significant fall in revenue from imports

GST collections dwindle again in August; significant fall in revenue from imports

GST collections on the month of August 2020 stood at Rs 86,449 crore, which is still much below the target. The revenues for the month are 88 per cent of the GST revenues in the same month last year, said the Ministry of Finance. During August, the revenues from the import of goods were 77 per cent and the revenues from the domestic transactions were 92 per cent of the revenues, compared on-year. The GST revenues in August have seen the second consecutive fall after the fall in July. It is also to be noted that the taxpayers with turnover less than Rs 5 crore continue to enjoy relaxation in the filing of returns till September.

Out of the total GST collections, CGST is Rs 15,906 crore, SGST is Rs 21,064 crore, IGST is Rs 42,264 crore, and cess is Rs 7,215 crore. Also, the government has settled Rs 18,216 crore to CGST and Rs 14,650 crore to SGST from IGST as regular settlement. The total revenue earned by the central government and the state governments after the regular settlement in the month of August 2020 is Rs 34,122 crore for CGST and Rs 35,714 crore for the SGST.

“The collections in August 2020, though at 88 per cent of collections in August 2019 are still pretty decent, especially when you compare the dip in collections from July to August in 2019,” said Rajat Bose, Partner, Shardul Amarchand Mangaldas & Co. The numbers seem to be stabilizing and are expected to be in this range at an average for the next six months at least, he added

Top