GST revenue rises in FY20 to INR 12.2 trillion
Amid a sharp economic slowdown marked by a slump in consumption, in the April-March period of FY20, GST revenue collection grew by 3.8% to INR 12.2 trillion from the year ago period. According to official data, central and state governments collected Rs97,597 crore in March, against the INR 1.25 trillion target for the month.
As per an official statement from the finance ministry, the total revenue earned by Central and state governments after settlement in March, stood at INR 41,901 crore and INR 43,516 crore, respectively. Among states, Gujarat registered a 7% year-on-year (yoy) growth in FY20, while Delhi reported an 11% yoy growth and West Bengal 9% yoy growth. It was also observed that many states with smaller tax base have reported higher growth rate. However, Uttarakhand was peculiar for its revenue contraction.
Since GST is a tax on consumption, the sluggish pace of its growth mirrors the deceleration in economic growth rate, projected at 5% in FY20, compared to a 6.1% growth in the previous year. Experts are in agreement that in the coming months, GST receipts would mirror the impact of the ongoing lockdown on economic activity.