Poor GST collections due to the COVID-19 pandemic have raised fresh concerns for the government, sources told CNBC-TV18. Goods and Services Tax (GST) collections for the month of March, recorded in April, stand at Rs 32,174 crore, as on April 30, they added. This compares with Rs 1.13 lakh crore recorded in the same month last year.
Talking to CNBC-TV18 on the condition of anonymity, government officials said yesterday, "These collections are for March and business activities were normal till March 24. People had started hoarding essentials during March in anticipation of a lockdown. The lockdown came into effect only from March 25 and thus these numbers are worrisome."
Government officials added that collections are likely to be worse in May and June and "bureaucrats have been discussing such trends since the last few days with the union finance minister and with the Prime Minister's Office."
"Given that majority of the businesses were closed due to the lockdown coupled with the moratorium given by the government to small businesses from payment of GST and filing of returns till 30th June 2020 has resulted in such a sharp decline in GST collections for this month. This trend is likely to continue for the next couple of months at least, if not more," said Rajat Bose, Partner, Shardul Amarchand Mangaldas & Co.
The government has allowed taxpayers to file GST returns for March till May 5 without any interest penalty in view of the COVID-19 lockdown. The taxpayers can also file GST returns for March between May 5 and June 30 with a 9 percent interest.
Revenue Secretary Ajay Bhushan Pandey had earlier set a target of Rs 1.25 lakh crore for collections for biz activities in March 2020.
First Published: IST