Signalling what may very well be in retailer for the State in phrases of collection of Goods and Service Tax (GST) for the month of May, when the State was in lockdown, the collection fell by 42% from March whereas the COVID-19 pandemic was raging in Bengaluru.
The complete GST collection, together with cess, fell from ₹9,954 crore in March to ₹5,731 crore in April. This is anticipated to slip steeply in the month of May, the figures for that are anticipated this month. The fall in collection for April got here after a report collection in the nation in March.
For the State, the web collection from State Goods and Services Tax (SGST), Integrated Goods and Services Tax (IGST) settlement, Karnataka Sales Tax, and Professional Tax dipped from ₹7,123 crore in March to ₹4,304 crore in April — a 40% decline. This is excluding the compensation obtained.
“We have not calculated a possible dip for May, but it could be big considering what has come for the month of April and the lockdown in place in May,” a senior Finance Department official mentioned.
While the State has been beneath lockdown since May 10 to curb the unfold of COVID-19, restrictions have been in place throughout Karnataka because the final week of April. Nearly 20 districts have carried out a stricter lockdown than the Statewide lockdown in May.
KST additionally down
Similarly, the collection of one of many necessary sources of income for the State — Karnataka Sales Tax (KST) — can also be down. While ₹1,885 crore was collected for March, it was down to ₹1,620 crore in April — a decline of about 14 %. With lockdown restrictions on motion of automobiles bringing down petrol and diesel consumption in May, it’s anticipated to go down additional.
The collection of Professional Tax can also be down from ₹106.28 crore to ₹82.75 crore in the 2 months. But in comparability to the corresponding two months final 12 months, the collection improved barely to ₹189 crore, as in opposition to ₹182 crore.
Last 12 months was worse
The figures for April/May this 12 months are much better when in comparison with the corresponding months of 2020, when the nationwide lockdown was in power. A complete GST collection of ₹15,686 crore has been reported this 12 months, as in opposition to ₹6,537 crore final 12 months — a 139% improve.
On the Sales Tax entrance too, the collection of ₹3,506 crore this 12 months, as in opposition to ₹1,662 crore final 12 months, is greater than double for the 2 months, with a development of 110%.