IMPACT OF COVID-19 ON GST
COVID 19 pandemic which has shaken the entire country and there is a negative impact on the economy, and since the Nation-wide lockdown the large scale industries, medium-scale industries, small scale industries and businesses that run on daily wage, Kirana stores has been shut down since March 2020, but now even though Unlock has been taken place in the country as many people are affected by the pandemic, they are not able to work efficiently due to the panic situation in the nation. And because of that, the economic activities throughout the country has been in a downfall. Goods and Service Tax (GST) revenue earned in the previous year was Rs. 1,02,082 crores, but in the year 2020 when it was calculated in the month of July, it was down to Rs.87,422 crores. But, since the unlock has been happening, the collection of tax will be increased progressively When it was compared between June 2020 and July 2020, the revenue of GST was higher in the month of June 2020By this it can be concluded that there is a 14.3% decline in GST revenue as compared to last year’s revenue.
Central Goods and Service Tax (CGST) collection stood at Rs. 39,467 crores as against Rs. 32305 crores in June 2020. Whereas State Good and Service Tax (SGST) collection stood at Rs. 40,256 crores which are higher than the collection of the previous year which is Rs. 35,087 crores. The Integrated Goods and Service Tax (IGST) is higher than the previous year which is Rs.42,592 crores and in the current year, it is Rs.40302 crores.
Due to COVID-19, the revenues which used to be obtained from import of the goods which were 84% the previous year but in 2020 there was a rigorous downfall in the import of the goods. Whereas the revenue generated from domestic transactions were 96% of the previous year levels. Based on the above facts, it can be noted that imports seem to be lower than domestic output.
By considering the above-mentioned facts, it can be concluded that indeed there is a huge negative impact of COVID-19 pandemic on GST.
