Full-year GST collection has grown only 4 per cent than the previous year in FY20.
Even as the Modi government revised down tax revenue target to Rs 21.6 lakh crore, the low GST collections may make it difficult to achieve even the revised target. GST collections in the month of March stood at a mere Rs 97,500 crore. In March CGST collections stood at Rs 19,183 crore, SGST at Rs 25,601 crore, IGST at Rs 44,508 crore and Cess at Rs 8,306 crore. With this, the full-year GST collection has grown only 4 per cent than the previous year. While the GST for the domestic transaction has shown a growth rate of 8 per cent in FY20, over the revenues last year, GST from imports on goods contracted by 8 per cent on-year.
Earlier, the government had raised the monthly GST collections target for the last three months of the current fiscal due to lower collections in the previous months. The GST collections target for January and February had been raised to Rs 1.15 lakh crore, whereas the target for March was raised to Rs 1.25 lakh crore. However, the targets were too optimistic to be achieved as the GST revenues during the month of March 2020 from domestic transactions have shown a contraction of 4 per cent over the revenue during the same month last year. The GST collected from the import of goods, has also decreased by 8 per cent on-year, while the GST on import of goods has shown a contraction of 23 per cent in March 2020.
During April-February 2020, the total tax revenue collected was Rs 16.88 lakh crore, including Rs 8.13 lakh crore from direct taxes and Rs 8.75 lakh crore from indirect taxes, according to the data provided by Anurag Singh Thakur, MoS, Ministry of Finance, in a reply to a question in Lok Sabha. Now, with a consecutive
Meanwhile, the GST collections were lower than the monthly targets even before the coronavirus started to hit the Indian economy. However, in the month of March, complete lockdown causing business disruptions, coupled with the spillover of the prolonged slowdown in the country, has kept the GST collection much below the expectation.