GST collections in August drop 12% to Rs. 86,449 crore

Central and state governments collected Rs. 86,449 crore as Goods and Services Tax (GST) in August, a 12% decline from the tax receipts in the same month a year ago.

August GST receipts is just a tad below the Rs. 87,442 crore collected in July, signalling that the tax on consumption is stabilizing as the country comes out of the lockdown restrictions and attempts an economic recovery. Official data showed that after settlement for inter-state transactions, central government collected Rs. 34,122 crore while states collected Rs. 35,714 crore in August.

During August, revenue from import of goods was 77% while the same from domestic transactions (including import of services) was 92% of the revenues from these sources during the same month last year. It may also be noted that the taxpayers with turnover less than Rs. 5 crore continue to enjoy relaxation in filing of returns till September, said the statement by the ministry of finance.

The GST revenue dip on account of imports shows the pandemic taking a toll on international trade, said Abhishek Jain, tax partner, EY. Domestic GST revenue at 92% year-on-year for operations in July is a sign of economic recovery after lifting the lockdown, explained Jain. The tax collections in August is in respect of transactions in July.