In this edition of Big Story, Moneycontrol's Sakshi Batra shares insights into reasons behind the fall in collections and whether collections will improve in the coming months.
GST collection for March slipped to a record low of Rs 28,309 crore as compared to Rs 1.13 lakh crore recorded in the same month last year. The collection presents a worrying trend, given that normal business activities were underway till March 24, when a nationwide lockdown was announced to control the spread of coronavirus.
GST is a consumption-based tax and is considered to be the first indicator of economic slowdown by economists. While minimal business activity is the key reason for low collection, many small businesses are learnt to have deferred tax filing in view of looming uncertainty and the need to conserve cash. The government is hopeful for collections to improve as the last date to file returns for March has been extended till May 5 without any interest and can be paid till June 30 with 9 percent interest.
In this edition of Big Story, Moneycontrol's Sakshi Batra shares details on the reasons behind the fall in GST collections and whether collections will show an uptick in the upcoming months.