Punjab’s GST Loss of Approx INR 1,600 Crore in April-June Compared with Last Year

Due to COVID-19, the Punjab government has collected 38% Goods and Service Tax (GST) in its first four months as compared with the last year. According to the Taxation dept, the total collection of both the SGST and IGST Get the brief introduction of SGST, IGST and CGST. We have mentioned their full forms, meanings and adjustments of input tax credit under GST in India was 2,644 crore against 4,252 crores from the last year.

The higher loss of Rs 1,608 crore from the previous financial year 2019, during April and May this year. This is due to the lockdown of the state due to coronavirus. The collection in 2019 was Rs 2,084 crore between April 1 and May 31 but in 2020 the revenue drops from 63% to Rs 717 crore.

During this lockdown as imposed by the curfew, the revenue sees the straight downfall of Rs 86%. On March 23, 2020, the revenue posses at Rs 156 crore as compared to 1,086 crores in 2019. But in May 2020 the collection seems to be effective probably at Rs 515 crore but not sufficient as compared to Rs 998 crore.

27 % Rise in Revenue from June

India’s GST revenue saw a downfall of 3.8% in July as from the preceding month but the states possessed a 27% increase in revenue. In the unlocking phase i.e in June, there is a rise in revenue collection at Rs 1,103 crore from Rs 870 crore in June which indicates that the Government is picking up from more and more sectors however it is still lower at 9.26% at Rs 1,216 crore in the similar month of last year.

From the taxation department, the data states that for the tax has been collected in the corresponding month from the last month. The relief was being provided to these taxpayers for furnishing the GST returns Get to know the online procedure of filing GST returns in India. We provide each and every GST form according to the taxpayers category from February, March, and April 2020.

Revenue Dips Despair Government

The deficit makes the Government worried as its revenue for every month was protected at Rs 2,503 crore for the current year. The Central Government depicted that with the new tax policies the states have been assured to have 14% year on year growth over the financial year 2015-16 and they are given compensation if any shortfall is there. The centre is to give compensation to the state government for the GST revenue gap of Rs 4,335 crore in the first two months (April and May 2020) which became due in June.

The compensation is accommodated to Rs 3000 crore given by the central government to the state government as the collection of advance tax On December 15th, 2019, the third instalment of advance tax payment is required for FY 2019-20 and by this date, 75% of advance tax liability has to be paid. Read More. Although the state Government faces issues after the finance ministry states that they are not in the condition to pay the compensation the aforementioned year. The state government has said about the assurance given by the central ministry about the assurance for GST compensation policies for states of India. From all states in India Punjab faces the highest dip in the GST revenue collection for three consecutive years.