In a clear indication of the economic hit of the lockdown-like restrictions in Maharashtra, state GST collections plummeted by 36.4% between April and May. The curbs announced to control the second wave of Covid clamped down on most sectors barring agriculture, manufacturing, construction and essential services. Currently, nonessential retail has been allowed to open in a limited manner.
GST collections in April reflected the transactions made in March. However, receipts in May reflect the transactions after the lockdown-like curbs began.
The latest data shows that GST collections decreased from Rs 22,012 crore in April to Rs 13,399 crore in May a fall of Rs 8,130 crore.
GST is a consumption-based tax and is an indicator of economic activity.
“There has been a decline in consumption especially since the non-essential retail sector and malls were closed. Even nonessential e-commerce activity was closed. This is reflected in GST collections,” said a senior official.
However, GST collections in the state are much higher than they were during the harsh national lockdown last year, when most sectors were closed. GST collections in May are 59% higher than the corresponding period last year. The receipts in May 2020 were Rs 8,426 crore. The cumulative GST collection this year since April stands at Rs 35,412.5 crore. This is higher than the same period last year by a steep 172%. By comparison, the receipts in Maharashtra between April and May 2020 during the national lockdown were Rs 13,012 crore.
Maharashtra had ended the pandemic-struck year of 2020-21 with GST collections that were 11% lower than 2019. Data showed that the state collected 1.6 lakh crore worth of GST in 2020-21 compared to 1.8 lakh crore in 2019-20. The receipts had dipped by Rs 20,609 crore.
The state has been pressing the Centre to settle its pending GST compensation dues, which are currently Rs 24,000 crore.
When the Maharashtra Budget was tabled on March 8, the state had revised its target for SGST collections. Although the target for 2020-21 had been set at Rs 1 lakh crore, the state had collected Rs 88,000 crore. The gap was Rs 19,146 crore. The budget documents said, “The tax collections are not showing the expected buoyancy due to the pandemic and non-receipt of compensation cess from the central government.”