While the country’s gross Goods and Services Tax (GST) revenue in July showed a negative growth of 3.84% when compared to the previous month, Kerala sprang a surprise by clocking a growth of 21%.
The state’s collection in July was Rs 1,530 crore as against Rs 1,264 crore in June. Experts view the development as an early sign of the economy’s recovery from the impact of Covid-19.
Nationally, the gross revenue slipped from Rs 90,917 crore in June to Rs 87,422 crore in July. The collection this July is only 86% of the mop-up last July.
For Kerala too, the collections in June and July are less when compared to the previous year’s figures. But a comparison of the past four months shows a steady growth signalling an early recovery of the state’s economy from the stalemate brought on by the coronavirus pandemic.
In April, the collection stood at 21.77% of the revenue for the month in 2019, and the figure has risen to 43.95% in May, 73.06 percent in June and 91.8 percent in July. The increase has taken the State Goods and Services Tax department by surprise.
“It could be a revival of the economy. Last month too, there was an increase. But a significant portion of that amount pertained to delayed payments of preceding months on account of the relief provided due to the pandemic. A sector-wise analysis of the GSTN data will be conducted to analyse the trend,” said a senior officer.
T Nasiruddin, president of the Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES), said the growth in tax collection was expected since the sales of different commodities increased after the lockdown.
“But this increase may be short-lived. As salary cuts and job losses are set to increase in the coming months, there would be a corresponding reflection in the market and tax revenue. Hundreds of retailers who have availed of loans will be forced to down shutters in the near future. The collection in August and September will give us a clearer picture of the situation,” he said.
In July, Kerala’s SGST revenue was Rs 660 crore and IGST revenue Rs 870 crore. The state’s gross collection in April and May were Rs 370 crore and Rs 692 crore respectively.
Read More at: https://www.newindianexpress.com/states/kerala/2020/aug/24/gst-revenue-growth-in-kerala-points-to-green-shoots-2187378.html