Gujarat & Andhra Pradesh Q1 Gets Lower GST Collection Due COVID 19

With the straight fall in the economy, states like Gujarat, Andhra Pradesh, Kerala and Tamil Nadu look out with the highest slump in the first quarter of the financial year compared to the previous financial year.

Facts and figures of GST decline of these states show that the Indian economy seems to highly depend on such industrialised states which have majority stake in running the Indian economy. The state Gujarat falls with 48%, Andhra Pradesh debars with 46%, Karnataka falls with 37% and Telangana falls with 35%.

In the lockdown phase, there is a decline in GST including state and interstate GST in its very first quarter. Above all, there is the inclination in the GST from May as told by the senior officer of the finance department.

Karnataka attained the highest GST in southern states of last year’s first quarter of Rs 8,591 crore from April to June in the current year as compared to Tamil Nadu’s GST collection of Rs 6,659 crore.

The employees of the IT sectors were working from home which clears that the Karnataka state has not much impact regarding economic condition. While on the other side Tamil Nadu comprises manufacturing industries and MSMEs which get affected during the lock-down. GST gets affected much more from them.

According to Ernst and Young one has to look towards the financial performance of GST and understands and considers that the GST revenues are normal whatever it counts on.

Though, From the centre, the states are also not expecting compensation for the loss of GST in the current lock-down as the revenue of the centre has also affected the same from the pandemic.

“Centre’s revenue collections Economist and current FM of West Bengal Amit Mitra’s warning on declining GST revenue were dismissed by many saying it a pure politics. In an event, he said. Read more should be equally stressed. There is some merit in Centre and states reconsidering the present compensation contract from a sustainability perspective. Both parties need to balance short term revenue considerations vis-a-vis achieving revenue stability for the period beyond the initial five years,”

Indian Government looks forward to having much more GST collection in the upcoming months.

“There are assessors who have not filed returns for the past financial year as the lockdown started from March 25. The Centre has provided time for assessors to file their returns till this month-end. The situation could improve in the coming months”.