The national tax Goods and Services Tax (GST) revenue collection has clocked 2.8 percent dip from a year ago period, according to data released by the government today.
The government collected Rs. 91,916 crore under various categories of the Goods and Services Tax (GST) in September. The the had collected Rs. 94,442 crore in a year ago period. This is the lowest revenue collection in 19 months since it was rolled out in July 2017.
As a result of the plunge in GST collection, the fiscal deficit may widen. The fiscal deficit is already under pressure due the corporate tax rates cut announced by the government in September.
In this background it is interesting to note that Finance Minister Nirmala Sitharaman, while announcing the corporate tax cuts, had said the government was aware of the impact of corporate tax cut on the country’s fiscal deficit.
It’s the second straight month when the collection has dragged down below the Rs 1-trillion mark. This is expected to add to the government’s revenue worries, amid a steep target for 2019-20. The government’s monthly GST collection target is around Rs 1.18 trillion.
In the first six months till September, the GST collection grew by 4.9 per cent compared to the year-ago period.
The central GST collection in September was lower at Rs 16,630 crore compared to Rs 17,733 crore in August. The state GST collection was Rs 22,598 crore, compared to Rs 24,239 crore the previous month. The integrated GST mop-up was also lower at Rs 45,069 crore against Rs 50,612 crore in August.