GST revenue collection in June stood at Rs 90,917 crore, up from Rs 62,009 crore mopped up in May and Rs 32,294 crore in April. However, the goods and Services Tax (GST) mop up was still 9 per cent short of Rs 99,939 crore collected in June last year.
The GST collections for the month of April was Rs 32,294 crore which was mere 28 per cent of the revenue collected during the same month last year and the GST collections for the month of May was Rs 62,009 crore which was 62 per cent of the revenue collected during the same month last year.
GST collections for the first quarter (April-June) of this fiscal declined 59 per cent when compared to the same quarter last year as lockdown imposed to contain spread of COVID-19 pandemic severely impacted economic activity.
The Ministry of Finance in a statement said, “the revenues during the financial year have been impacted due to COVID-19, firstly due to the economic impact of the pandemic and secondly due to the relaxations given by the government in filing of returns and payment of taxes due to the pandemic. However, figures of past three months show recovery in GST revenues.”
States like Punjab, Chhattisgarh, Madhya Pradesh, Bihar, Assam, Andhra Pradesh, Telangana, Karnataka witnessed growth in collection in June over last year.
North Eastern states like Sikkim, Manipur, Mizoram, Tripura, Nagaland, Arunachal Pradesh too witnessed Increase in revenue during the month.
“The gross GST revenue collected in the month of June, 2020 is Rs 90,917 crore of which CGST is Rs 18,980 crore, SGST is Rs 23,970 crore, IGST is Rs 40,302 crore (including Rs 15,709 crore collected on import of goods) and Cess is Rs 7,665 crore,” an official statement said.
“The government collected gross #GST revenue of Rs 90,917 crore in June 2020, which is 91 per cent of the collections in June 2019,” Office of Finance Minister Nirmala Sitharaman said in a tweet.
Out of the total GST collection of Rs 90,917 crore for June, CGST was Rs 18,980 crore, SGST was Rs 23,970 crore, an official statement said.
The total revenue earned by central government and state governments after regular settlement in June, stood at Rs 32,305 crore for Central GST and Rs 35,087 crore for the State GST.
During June, the revenues from import of goods were 71 per cent and the revenues from domestic transaction were 97 per cent of the collections from these sources during the same month last year. However, since the government had allowed a relaxed time schedule for filing of GST returns, and returns for the month of April, March as well as February got filed during June 2020. Some returns of May 2020, which would have otherwise got filed in June 2020, will get filed during first few days of July 2020, the Ministry added.
EY Tax Partner Abhishek Jain sais, “With this shortfall and related dip in revenue for states as well, the Centre’s obligations to compensate States for any shortfall is an area of concern and this being further deepened with muted compensation cess collections,” Jain added.
Meanwhile, Deloitte India Partner M S Manu said the June revenue numbers indicate that a revival is underway and collections will improve in the coming months.
“In June some of larger producing states have shown an increase in collections or stable revenues compared to last year while some of the consuming states have shown a decline,” Mani added.