|
|
|
GST collections may be 30% lower in FY21
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 05 Nov, 2020
Government facing severe
pressure on revenues due to the Covid disruptions may end the current
financial year with a 30 per cent drop in Goods and Service Tax (GST)
collections.
This would be a big setback to the Centre that is
already burdened with adequately compensating the states for GST related
revenue shortfall.
According to the EcoScope report by Motilal
Oswal Financial Services, GST collections is expected to come in at Rs
9-9.2 lakh crore range in FY21 as against the budgeted estimate of Rs
13.8 lakh crore.
This comes despite the fact that GST collections
stood at Rs 1.05 lakh crore in October, 10.2 per cent higher than the
collections in October 2019.
The October collections were also
the highest amount of GST collected since February 2020 when the
Covid-19 pandemic broke out in India.
With this, the total amount
of GST collected during April-October 2020 stood at Rs 5.6 lakh crore, a
decline of 20.2 per cent year-on-year (YoY).
Additionally, as
against the target of Rs 13.8 lakh crore for FY21, the government has
collected Rs 5.6 lakh crore so far, which is 41 per cent of FY21 budget
estimate (BE) as against 58 per cent (of FY20 BE) achieved last year by
this time.
Within the total GST collected last month, CGST
amounted to Rs 19,190 crore, SGST amounted to Rs 25,410 crore and IGST
amounted to Rs 52,540 crore.
Moreover, GST collection on imports
also rose by 9 per cent YoY to Rs 23,380 crore in October 2020,
implying pure domestic collections at Rs 81,780 crore (which saw growth
of 10.6 per cent YoY) during the month.
Notably, daily e-way bill
generation in October 2020 (up to October 25) was 2 million units, the
highest in eight months. This is indicative of sustained pick-up in
economic activity, the brokerage said.
Growth in GST revenue in
Sept-Oct 2020 (vs the contraction seen in Mar-Aug 2020) implies the
trajectory of the economy's recovery, and correspondingly, the
government's revenues, Motilal Oswal said.
Since the relaxation
given for filing of returns has ended, the 8m GSTR-3B returns filed in
October 2020 is for the economic activities conducted only in September
2020.
The report highlighted that the level of returns filed has reached pre-Covid levels.
Overall,
another monthly growth in GST collection in October 2020 is definitely
welcome. The uncertainty regarding the trajectory of GST collection
under normal circumstances - post the nationwide lockdown and compliance
related reliefs - seems to have reduced after last month's reading.
"Going
ahead, how quickly do the collections revive and make up for the
contraction witnessed in the first half of FY21 will be carefully
watched," the brokerage report said.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|