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
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
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