The Covid-induced shrinking of economic activity for the past few months conti
The Covid-induced shrinking of economic activity for the past few months continued to have its impact on government’s tax collections with revenue under the Goods and Services Tax (GST) falling far below the psychological level of Rs 1 trillion to Rs 87,422 crore in July.
The July collections, which is 84 per cent of last year’s numbers, is however, a recovery from the months of April and May when Covid-19 induced lockdowns and severe disruptions in economic activities resulting in GST collections nosediving to all time low levels.
The GST collections for the month of April was Rs 32,294 crore which was mere 28 per cent of the revenue collected during the same month last year and the GST collections for the month of May was Rs 62,009 crore which was 62 per cent of the revenue collected during the same month last year.
Only in June GST collections recovered to touch Rs 90,917 crore.
“The revenues for the last month (June) were higher than the current month. However, it is important to note that during…