GST collection goes up indicating India’s economy is gradually improving

RBI said to delaying top banker bonuses amid banking frauds

WITH the resumption of business activities impacted by nationwide lockdown to contain spread of the Covid-19 pandemic, India has reported that the Gross GST revenue collected in June 2020 has increased. Government and Reserve of India have provided multiple sops to revamp the economy battered during the lockdown. The gross GST collection is 90 thousand 917 crore rupees of which CGST is 18 thousand 980 crores, SGST is 23 thousand 970 crore and IGST is 40 thousand 302 crore rupees. It also includes 15 thousand 709 crores collected on import of goods and Cess is seven thousand 665 crore rupees. The GST collections for April were 32 thousand 294 crore rupees which were 28 percent of the revenue collected during the same month last year. A decline in GST revenues was expected due to business activities remaining closed. These revenue numbers indicate that Indian economy is on swing gradually and collections will improve in the coming months,” said MS Mani, partner, Deloitte India. The government settled Rs 13,325 crore to CGST and Rs 11,117 crore to SGST from IGST as regular settlement. The total revenue earned by the central government and the state governments after regular settlement in the month of June was Rs 32,305 crore for CGST and Rs 35,087 crore for the SGST. On Q1 collections coming in at 59 percent of revenues in the year-ago period, Mani said, “The fact that the collections in Q1 are 59 percent of that in the similar period last year while being indicative of the decline in economic activities during Q1 also indicates that a gradual revival is underway in some sectors, “said The Business Standard. As the government had extended the time period for filing of GST returns, returns for the months of April, March as well as some returns of February was filed in June and some returns of May, which would have otherwise got filed in June, would get filed during first few days of July. It is needless to add that the revenues during the financial year have been impacted due to COVID-19, due to the lockdown and because of the relaxations in the filing of returns and payment of taxes due to the pandemic. “The revenues for June were 91 percent of the GST revenues in the same month last year. During the month, the revenues from import of goods were 71 percent and the revenues from the domestic transaction (including import of services) were 97 percent of the revenues from these sources during the same month last year,” the government said in a release. In May, 62 thousand nine crore rupees were collected out of which was 62 percent of the revenue collected during the same month last year. The GST collections for the first quarter of the year is 59 percent of the revenue collected during the same quarter last year. Our correspondent reports, however, many taxpayers still have time to file their return for the month of May 2020. (courtesy to Mint for the pic).

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