The Goods and Service Tax (GST) revenue of all states and union territories decreased by 30.4% in the April-August period of 2020-21, as compared to the same period last year. While the total GST revenue in this period stood at Rs 3,90,650 crore in FY19, it decreased to Rs 2,71,979 crore this year.
This state-wise data was shown in Parliament by Minister of State for Finance Anurag Singh Thakur in response to questions raised by Karur MP S Jothimani.
Goa saw the most decline in GST revenue (43.4%), but among the southern states, Karnataka’s revenue declined 27.9%, Kerala’s by 33.6%, Tamil Nadu’s by 35.2%, Telangana’s by 26.3% and Andhra Pradesh’s by 26.4%.
The data also shows that Maharashtra generated the highest GST revenue. The state’s GST revenue was Rs 75,910 crore between April-August in 2012-29 and Rs 52,154 crore in the same period this year. Maharashtra is followed by Karnataka, Tamil Nadu and Uttar Pradesh.
| State | 2019-20 | 2020-21 | Decline |
|---|---|---|---|
|
Maharashtra |
75,910 |
52,154 |
31.3% |
|
Karnataka |
34,362 |
24,763 |
27.9% |
|
Gujarat |
32,503 |
22,049 |
32.2% |
|
Tamil Nadu |
30,528 |
19,797 |
35.5% |
| Uttar Pradesh | 27,170 | 19,563 | 28% |
The Ministry also disclosed that the Centre has collected only 26.2% of the total GST target for FY21 as of August 2020. The total net GST target for the centre, as per receipt budget document has been pegged at Rs 6,90,500 crore for 2020-21. The actual net GST collection for the centre till August 2020 is Rs 1,81,050 crore.
The Finance Ministry also submitted data on how much GST compensation has been released so far. The Centre has disbursed Rs 2,96,465.49 crore in GST compensation to states since the inception of GST. Karnataka has received the highest among all states so far - Rs 38,763 crore.
Andhra Pradesh has so far received Rs 3,410 crore, Kerala received Rs 13,745 crore, Tamil Nadu received Rs 18,147 crore and Telangana received Rs 3,223 crore.
The Karur MP also questioned why there was a shortfall, to which MoS Thakur responded that the Nominal GDP contraction of 22.6% for the April-June quarter was one of the major reasons for revenue shortfall in GST.
“Other reasons for low tax collection inter-alia include nationwide lockdown measures implemented since March 2020 consequent to global COVID-19 pandemic which led to limited economic activities, extension of GST return filings timelines without payment of interest, late fee or penalty etc.”
The ministry also disclosed that due to a shortfall in the GST Compensation Cess collection in the current financial year, GST compensation is yet to be paid for the period April-July 2020, and that GST compensation up to March 2020 has been released.
He also outlined the two borrowing options put forth by the Centre to states to borrow the GST revenue shortfall.
When asked if the Centre is likely to extend GST cess beyond FY22, the minister didn’t directly answer the question, but said that the Section 18 of Constitution (One Hundred and First Amendment) Act, 2016 provides for payment of GST compensation to the states, for loss of revenue arising on account of implementation of GST for a period of five years.