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Tuesday, May 5, 2020

COVID-19 impact: States see sharp erosion in GST collections for April

The COVID-19 outbreak and nationwide lockdown is severely denting the revenue collections of states pushing them to look at possible revenue earning measures including phased opening of liquor vends and pan and gutka shops in the first phase of relaxations for restarting economic activity post lockdown.

The delay is because the government deferred allowed delayed filing of GSTR 3B returns for 15 days from the due date of April 20 to ease compliance burden on taxpayers during lockdown. The worst hit seems to be states such as Delhi, West Bengal, Assam, Andhra Pradesh that are reporting fall in April GST collections to the tune of 90 per cent.

West Bengal is also facing serious fall in tax collections as lockdown has completely stopped service sector activity while manufacturing also remains suspended. GST collections have been badly hit in hilly states that depend largely on tourism and hospitality for revenue.

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