GST collections may come in as a surprise for the government as collections for the month of July are likely to be lower on both year-on year basis and a month-on-month basis. Sources told CNBC-TV18 that collections may range between Rs 89,000 crore and Rs 91,000 crore for July which are to be reported in August, reports Timsy Jaipuria. Last year the GST collections for July stood at over Rs 94,000 crore and collections of June this year were over Rs 96,000 crore.
Sources say that there are various reasons for a decline in collection, such as low consumption in the last few days of July as rate cut was announced on July 21. Also monsoon is traditionally a season of low sales. This coupled with less number of returns being filed, which is around 60 lakh filed till date. Most importantly, an impact of Kerala floods too have added to a slow return filing by corporates.
Meanwhile, government officials told CNBC-TV18 that next few months are going to be even more crucial for GST collections as the impact of GST cuts announced on July 21 will reflect in August and September collections, which will be announced officially on October 1st and November 1st.
Read More at: https://www.cnbctv18.com/economy/july-gst-collections-likely-to-be-around-rs-90000-crore-606201.htm