GST: State experiences 26 per cent loss in 6 months
Thiruvananthapuram: Due to the COVID-19 outbreak, the state witnessed a drop of 26 percent in income through Goods and Service Tax (GST) during the period between March and August. This indicates that the pandemic has affected all sectors in Kerala. The tax revenue from the service sector has dropped by 37 percent.
Rs 1922 crore was received as tax revenue from service sector during the same period in 2019 whereas it dropped to Rs 1213 crore this year. This is stated in a report prepared by GST Commissioner Anand Singh and Associate Professor of the Gulati Institute of Finance and Taxation (GIFT) Dr Ramalingam. The report was published in the Kerala Economy journal of the GIFT.
The GST revenue earned during this period last year was Rs 10,079.91 crore while only Rs 6307.91 crore could be received this year. There was a loss of 38 percent in the revenue. However, the delay in paying the tax amid the pandemic restrictions also is considered. So, the drop in GST revenue is counted as 26 percent.
The study conducted by R K Singh, additional chief secretary in finance department, and L Anithakumari, associate professor in GIFT, pointed out that the revenue loss increased by 57 percent in April-July due to COVID crisis. Also the capital loss is increasing causing huge liability for the state, it is stated in the report.