Central GST collection fell by 87% in April as lockdown hurts economy

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Central goods and services tax (CGST) collection stood at Rs 5,934 crore in April, a fall of 87 percent compared with the Rs 46,848 crore collected in the same month last year, according to the official data. The data primarily pertains to activities in March, which had only a few days under the Covid-19 lockdown. For April, CGST collection could be much lower, fear analysts. CGST is levied on the intra-state supply of both goods and services by the central government.

The slowdown in revenue collections could be attributed to the nationwide lockdown and the deferment of payment as well as return filing during March-May. From the data, it is not possible to deduce the overall GST collection since state GST (SGST) is usually higher than CGST. For instance, CGST stood at Rs 19,183 crore and SGST at Rs 25,601 crore in March 2019-20. The Budget has pegged CGST at Rs 5.8 trillion for 2020-21, which means Rs 48,333.33 a month on average. However, the Budget figures are outdated due to the outbreak of Covid-19 and the resultant lockdown.

Read More at: https://www.business-standard.com/article/economy-policy/central-gst-collections-fell-by-87-in-april-as-lockdown-hurts-economy-120053000439_1.html