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Central and state governments collected Rs 87,422 crore as Goods and Services Tax (GST) revenue in July, down over 14% from the year-ago period.
July collections are also 3.8% lower on month but the numbers are not comparable as the payment schedule was relaxed to help companies facing a liquidity crunch.
“Revenues for the last month (June) were higher than that of the current month. However, it is important to note that during the previous month, a large number of taxpayers also paid taxes pertaining to February, March and April 2020 on account of the relief provided due to COVID-19. It may also be noted that the taxpayers with turnover less than Rs 5 core continue to enjoy relaxation in filing returns till September 2020,” the finance ministry said in a statement.
GST tax mop-up for accounts for 86% of what was collected in the same month a year ago, and as such showcases quite a significant economic recovery from the pandemic although a bit of it could be on account of pent-up demand, according to Abhishek Jain, Tax Partner, EY.
Revenue collections fell sharply in the case of Delhi, Maharashtra, Karnataka, Gujarat, and Tamil Nadu. Delhi reported a 23% year-on-year fall in revenue collection in July, while Tamil Nadu saw a 24% fall. Maharashtra reported a 17% decline and Karnataka saw revenue collection fall 15%.
