The Punjab authorities has suffered a dent of 38% in its gross items and companies tax (GST) assortment within the first 4 months of the present fiscal because of the Covid-19 outbreak and subsequent lockdown.
The state’s GST mop-up, together with state GST (SGST) and built-in GST (IGST), for the April-July interval was Rs 2,644 crore as towards Rs 4,252 crore through the corresponding months of the earlier yr, in response to the newest information shared by the taxation division.
The dip of Rs 1,608 crore in GST collections as in comparison with monetary yr 2019 is primarily of account of income loss throughout April and Could this yr when the state was below whole lockdown to test the unfold of coronavirus with curfew in place. In opposition to a set of Rs 2,084 crore within the first two months of economic yr 2019, the state authorities received merely Rs 717 crore, or say 63% much less, between April 1 and Could 31 this yr.
The income had taken a nosedive of 86% at first of the yr as curfew was imposed in Punjab on March 23, falling from Rs 1,086 crore in April 2019 to merely Rs 156 crore this time. Could’s collections had been higher however marginally at Rs 515 crore towards final yr’s Rs 998 crore earlier than choosing up additional within the subsequent two months.
27% JUMP IN REVENUE FROM JUNE
In contrast to the all-India GST income which noticed a 3.8% drop in July as in comparison with the earlier month, the state posted a rise of 27%. The influx rose to Rs 1,103 crore from Rs 870 crore in June, indicating stability in collections as financial exercise is choosing up in increasingly sectors through the unlocking course of, although it’s nonetheless 9.26% decrease than the GST mop-up of Rs 1,216 crore in the identical month of the earlier yr.
A taxation official stated the collections for these months might embody some tax returns for earlier months additionally as aid was offered to taxpayers in furnishing of returns for the months of February, March and April 2020 in view of the pandemic. Commissioner, taxation, Nilkanth S Avhad stated there may be some restoration attributable to revival of financial system however there may be nonetheless a protracted approach to go.
DIP IN REVENUE WORRIES GOVT
The shortfall has received the state authorities frightened although its month-to-month GST income is protected at Rs 2,503 crore for this yr. Beneath the brand new oblique tax regime, the states have been assured a 14% year-on-year development of their GST income over the monetary yr 2015-16 base and they’re to be compensated by the central authorities for any shortfall. “The centre is to present compensation to the state authorities for the GST income hole of Rs 4,335 crore in first two months (April and Could 2020) which grew to become due in June,” a state official stated requesting anonymity.
The compensation, which is given bimonthly, for June and July is estimated to be roughly Rs 3,000 crore as per advance tax assortment figures and can grow to be due this month. Nonetheless, there may be nervousness within the state authorities after the finance ministry indicated to a parliamentary panel that it is probably not able to pay the promised compensation this yr. The state authorities, in a letter final week, raised its objections, reminding the centre of its innumerable assurances for assured compensation. Punjab has been among the many states reporting the best shortfall within the GST income assortment previously three years.