The government has already transferred Rs 27,955 crore to the states in the form of compensation in June-July this year and Rs 17,789 crore in April-May.
In another indicator of economic slowdown
, GST collection
has dropped below Rs 1 lakh crore mark to Rs 91,916 crore for September. The September collection is believed to be the lowest in nineteen months.
The revenue during September, 2019 has declined by 2.67% in comparison to the revenue during September, 2018. During April-September, 2019 vis-à-vis 2018, the domestic component has grown by 7.82% while the GST on imports has shown negative growth and the total collection has grown by 4.90%
“The total gross GST revenue collected in the month of September, 2019 was Rs 91,916 crore of which Central GST (CGST) was Rs 16,630 crore, State GST (SGST) was Rs 22,598 crore, Integrated GST (IGST) was Rs 45,069 crore (including Rs 22,097 crore collected on imports) and Cess is Rs 7,620 crore (including Rs 728 crore collected on imports),” an official statement said.
The government needs over Rs 1 lakh crore GST in order to meet its fiscal target and also to not compensate states for losses. It compensates states once in every two months for the losses they incur in the first five years of the implementation of GST.
The government has already transferred Rs 27,955 crore to the states in the form of compensation in June-July this year and Rs 17,789 crore in April-May. With government already committed to scaling up public spending to boost the sagging economy, lower GST collection could change its fiscal maths. By lowering corporate tax it has already taken a big bet.
via GST revenue: GST collection slips below Rs 1 lakh crore mark to Rs 91,916 crore in September