InvestorQ : Why were GST revenues so low for the month of July 2020?
Mitali Bhutta made post

Why were GST revenues so low for the month of July 2020?

Answer
user profile image
diksha shah answered.
2 months ago


GST collections in July 2020 were 14% lower at Rs.87,422 crore even as the economy gradually limped back to normalcy. The mop up remained well under the Rs.100,000 level due to the pandemic impact. Government is seriously looking to introduce anti-evasion measures like e-invoicing for large firms 01 October.

Compensation cess collection improved marginally to Rs.7265 crore in July. Revenue strategy will be discussed in the August meeting, even as states are clamouring for their share of GST to be paid immediately. Revenues from import of goods were 84% of the levels seen in July 2019. Industry has demand for more GST relief, particularly in form of liquidity support in the light of the pandemic driven slowdown.

For July, central GST collection stood at Rs.39,467 crore, state GST collection at Rs.40,256 crore and integrated GST at Rs.42,592 crore. It does represent a significant recovery over June and May this year. However, experts caution that this could include some of the amounts pertaining to previous months too.