GST revenue at Rs 86,449 crore in August, down 12% from same month last year

gross revenue from Goods and Services Tax (GST) in August dipped to Rs 86,449 crore from previous month's Rs 87,422, data released by Union Finance Ministry revealed on Tuesday. Last month's collection is 88% of GST revenues in same month last year.

Of August revenue, Rs 15,906 crore has been collected under CGST, Rs 21,064 crore under SGST, Rs 42,264 crore (including Rs 19,179 crore collected on import of goods) under IGST and Rs 7,215 crore (including Rs 673 crore collected on import of goods) as Cess, government said.

 government has settled Rs 18,216 crore to CGST and Rs 14,650 crore to SGST from IGST as regular settlement. total revenue earned by Central Government and State Governments after regular settlement in month of August is Rs 34,122 crore for CGST and Rs 35,714 crore for SGST.

Ministry said during month, revenues from import of goods were 77% and those from domestic transactions (including import of services) were 92% of revenues from se sources during same month last year. It highlighted that taxpayers with turver less than Rs 5 crore continue to enjoy relaxation in filing of returns till September.

^{( chart shows trends in monthly gross GST revenues during current year. Im: Ministry of Finance)}

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latest figures add to ar worry for Modi government that is facing triple whammy of record ecomic contraction, falling revenues, and rising inflation. Indian ecomy contracted by a record 23.9% in first quarter(April-June) of 2020, GDP estimates released on Monday revealed. 

Centre and n-BJP-ruled states are at loggerheads over financing of Rs 2.35 lakh crore GST shortfall in current fiscal. Of this, as per Centre's calculation, about Rs 97,000 crore is on account of GST implementation and rest Rs 1.38 lakh crore is impact of COVID-19 on states' revenues.

Centre last week gave two options to states to borrow eir from a special window facilitated by Reserve Bank of India or from market and has also proposed extending compensation cess levied on luxury, demerit and sin goods beyond 2022. States have vehemently opposed both proposals and wants Centre to borrow and n distribute funds among m.

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