Compensation cess collection improved was slightly lower than last month at Rs 7,265 crore in July compared to Rs 7665 crore in June. The GST Council is expected to meet sometime in August to settle an alternative compensation mechanism as cess collections remain inadequate.
The revenues from import of goods were 84 per cent of the levels seen in July last year, whereas those from domestic transactions were 96 per cent of the last year levels
“Imports still seem to be lower than domestic output. This augurs well for the Government and collections are likely to improve further as lockdown is eased progressively. Industry can perhaps hope for some more GST relief, particularly in form of liquidity support as they navigate through the slowdown,” said Pratik Jain, partner, PwC India.
Central GST collection stood at Rs 39,467 crore as against Rs 32,305 crore in June. State GST collection was Rs 40,256 crore, higher than Rs 35,087 crore in the previous month. The integrated GST mop-up was also higher at Rs 42,592 crore as against Rs 40,302 crore in the previous month.
Abhishek Jain, Tax Partner, EY said that a collection approximate to 86 percent of last year does showcase quite a significant economic recovery
from the pandemic though a bit of it could be on account of pent up demand. “With economic activities increasing, the collections should hopefully witness aligning with estimates soon", he said.
M. S Mani, partner, Deloitte India said that the progressive unlockdown steps taken by various states in June are reflected in the improvement in GST collections
for July although the figures also includes some transactions in respect of earlier months.
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