GST revenue grows 3.8% in FY20 to Rs12.2 trillion
NEW DELHI: Central and state governments collected Rs97,597 crore in March, against the Rs1.25 trillion target for the month, amid an economic slowdown. In the April-March period of FY20, GST revenue collection grew by 3.8% to Rs12.2 trillion from the year ago period, official data showed on Wednesday.
The sluggish pace of annual GST collection growth comes amid a sharp economic slowdown marked by a slump in consumption. GST, a tax on consumption, mirrors the deceleration in economic growth rate, projected at 5% in FY20, compared to a 6.1% growth in the previous year.
GST authorities had in recent past taken a slew of measures including restricting the use of tax credits by buyers of goods and services in cases where suppliers have not provided the required documentation. An official statement from the finance ministry said that the total revenue earned by Central and state governments after settlement in March, stood at Rs41,901 crore and Rs43,516 crore, respectively. Out of the total 1.2 crore businesses registered for GST, 76.5 lakh filed returns for the month of February till end of March. Revenue collections in March represent sales in February.
Official data showed that among states with a large revenue base, Gujarat registered a 7% growth in FY20 from a year ago, while Delhi reported an 11% growth and West Bengal 9% growth. Many states with smaller tax base have reported higher growth rate, while Uttarakhand reported revenue contraction.
Experts said that in the coming months, GST receipts would mirror the impact of the ongoing lockdown on economic activity. “With most businesses being non-operational for a considerable period in March and the relaxation of delayed payments being allowed, collections in the coming quarter would see quite a fall,” said Abhishek Jain, Tax Partner, EY.
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