This year’s restrictions by States have inflicted less economic costs than the 2020 lockdownEntering its fifth year, India’s Goods and Services Tax (GST) system reported a blip in revenue collections for June, breaking an eight-month streak of over ₹1-lakh crore in tax receipts. GST revenues tanked to a tad less than ₹93,000 crore last month — the lowest in 10 months — after a record ₹1.41-lakh crore in April and a relatively tepid ₹1.02-lakh crore in May. However, as May GST compliance dates for smaller taxpayers were extended till early July, some of this revenue also reflects April’s sales. Thus, the actual GST income attributable to May’s economic activity would be lower than June’s gross GST kitty. Clarity is also needed urgently on when the ₹1.58-lakh crore of back-to-back borrowings for States in lieu of compensation dues will begin.

Source: The Hindu July 08, 2021 18:33 UTC