With the lockdown hitting transactions as well as tax payments by businesses in the last week of March, the government’s gross GST revenue in April could fall as much as 30-40% of the average monthly revenue collections achieved in FY20, which was around Rs 1 lakh crore, analysts said. Large companies, especially from the fast moving consumer goods (FMCG) segment, are likely to rescue the mop-up to some extent, they added.
The exception to this is one of the white goods makers, whose sales witnessed a completely slump in the last week of March. However, the firm had normal business and sales in the previous three weeks of the month.
The GST Council has estimated that around 7,000 GST-registered firms contribute over 90% of the revenue. Other smaller firms, which constitute over 1.2 crore GST taxpayers, are likely to defer their compliance to the last week of June, as allowed by the government without any interest, penalty and late fees as a relief measure.
The exception to this is one of the white goods makers, whose sales witnessed a completely slump in the last week of March. However, the firm had normal business and sales in the previous three weeks of the month.
The GST Council has estimated that around 7,000 GST-registered firms contribute over 90% of the revenue. Other smaller firms, which constitute over 1.2 crore GST taxpayers, are likely to defer their compliance to the last week of June, as allowed by the government without any interest, penalty and late fees as a relief measure.
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