The lockdown period was seen as a time when the economic activity was at a standstill. But looks like GST revenue data shows that the decline was not that bad compared to last year same period. This could be attributed to the already declining economy activities.
Compared to last year (2019-2020) April-August period, GST revenues dropped by 30.4 per cent in the FY 2020-2021 April-August period. While GST revenue was 3.9 lakh crore in FY 2019-2020 April-August period, it was 2.7 lakh crore in the same period in FY 2020-2021, the Ministry of Finance informed the Lok Sabha.
In value terms, Maharashtra has lost Rs 23,756 in the lockdown period compared to the same period last year.
What is more alarming is that the centre has not cleared dues worth Rs 1.51 lakh crore to the states. In that list again Maharashtra leads.
In percent terms, the loss of Maharashtra is lower than Union Territories (UT) and states like Daman and Diu, Goa, Mizoram among others. Some states and UT have witnessed a decline in GST revenue by 44 per cent.
After Maharashtra, other states like Tamil Nadu and Gujarat have witnessed a decline in GST revenue by Rs 10,785 crore and Rs 10, 454 crore respectively in FY 2020-2021 April-August period as against the same period last year. Meanwhile, the GST revenue of Maharashtra, Gujarat, and Tamil Nadu is Rs 52,154 crore, Rs 19,797 crore, and Rs 22,049 respectively in the FY 2020-2021 April-August period.
The GST revenue of other states like Uttar Pradesh (UP), Madhya Pradesh, Bihar have declined by 28 per cent, 22.2 per cent, and 22.9 per cent respectively. In the value terms, UP’s GST revenue declined by Rs 7,607 crore.
According the ministry, the provisional GST compensation due to states/UTs for 2020-21 was highest for Maharashtra at Rs 22,485 crore, followed by Karnataka, Uttar Pradesh, Gujarat and Tamil Nadu at Rs 13,763 crore, Rs 11,742 crore, Rs 11,563 crore and Rs 11,269 crore respectively.