July GST collection tumbles 14% to Rs 87,422 cr as Covid-19 hits economy© hindustantimes.com

July GST collection tumbles 14% to Rs 87,422 cr as Covid-19 hits economy

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The goods and services tax (GST) collections in July stood lower than the previous month and were 86 per cent of the levels seen in the same month last year as economic activity limps back to normalcy with the unlocking process picking pace. The mop up remained well under the Rs 1 trillion mark for the fifth straight month with the economy reeling under the pandemic shock.

The GST collections stood at Rs 87,422 crore in July compared to Rs 90,917 crore in June, data released by the ministry of finance showed on Saturday. The collections are in fact, 14.6 per cent lower than July last year, when the mop up was a robust Rs 1.02 trillion. In order to improve collections, the government is looking to introduce more anti-evasion measures including e-invoicing for large firms with turnover of Rs 500 crore from October 1.

“The revenues for the last month were higher than the current month. However, it is important to note that during the previous month, a large number of taxpayers also paid taxes pertaining to February, March and April 2020 on account of the relief provided due to Covid-19,” the ministry of finance explained in an official release. It may also be noted that the taxpayers with turnover less than Rs 5 core continue to enjoy relaxation in filing of returns till September 2020, it further noted.