GST collections fall to Rs 93,960 cr in August

GST collections declined to Rs 93,960 crore in August the lowest monthly mop up so far this fiscal as consumers deferred purchase of goods to avail the benefits of cut in tax rate, the Finance Ministry said.

Goods and Services Tax (GST) revenue for August was the lowest in the five months so far this fiscal.

In July, the collection was Rs 96,483 crore, in June it was Rs 95,610 crore, in May Rs 94,016 crore and in April Rs 1.03 lakh crore.

However, compliance improved as 67 lakh GSTR-3B or summary sales returns were filed during August, up from 66 lakh filed in July.

The August revenue collections reflect the purchase and sales activities conducted in the month of July.

Explaining reasons for the dip, the ministry said one of the main factors is probable postponement of sale of items for which tax rate was reduced by the GST Council in its meeting on July 21.

The rate cut on 88 items, including sanitary napkins, fridge, small screen TV, washing machine, footwear, among others, was effective July 27.

Only 35 items were left in the highest tax bracket of 28 per cent after the latest round of rate cuts.

(Agencies)