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BHUBANESWAR: The state GST (SGST) collection is likely to be affected in June as retail, tourism and hospitality industries have been severely hit because of the lockdown since May first week.
Sources in the state GST commissioner’s office said a clear trend regarding SGST collection of the month will emerge in the next week as June 20 is the last date for filing of returns for the month.
Official sources said even though SGST collection will reduce in June because of the ongoing lockdown, it will not be as dismal as June last year.
During the national lockdown in 2020, several sectors like industrial production, goods movement, mining operations were affected along with other sectors like retail, tourism and hospitality. “Since the state government has allowed industrial and mining operations and free movement of goods, the collection may not be as low as June last year,” said a senior government official requesting anonymity.
The state’s monthly SGST collection is estimated to be around Rs 700 to Rs 800 crore, while majority of the SGST has been collected from industrial production.
Collection of SGST was severely affected in the first quarter (April-June) of 2020-21 though the situation improved a lot in the subsequent quarters.
The VAT collection is expected to fall because of reduction in sale of petrol and diesel in view of restrictions on movement of people and inter-state travel restrictions.
“We expect an improvement in the collection with the state government starting the process of unlock by allowing opening of shops and commercial establishments in most districts,” said the official.
Sources in the state GST commissioner’s office said a clear trend regarding SGST collection of the month will emerge in the next week as June 20 is the last date for filing of returns for the month.
Official sources said even though SGST collection will reduce in June because of the ongoing lockdown, it will not be as dismal as June last year.
During the national lockdown in 2020, several sectors like industrial production, goods movement, mining operations were affected along with other sectors like retail, tourism and hospitality. “Since the state government has allowed industrial and mining operations and free movement of goods, the collection may not be as low as June last year,” said a senior government official requesting anonymity.
The state’s monthly SGST collection is estimated to be around Rs 700 to Rs 800 crore, while majority of the SGST has been collected from industrial production.
Collection of SGST was severely affected in the first quarter (April-June) of 2020-21 though the situation improved a lot in the subsequent quarters.
The VAT collection is expected to fall because of reduction in sale of petrol and diesel in view of restrictions on movement of people and inter-state travel restrictions.
“We expect an improvement in the collection with the state government starting the process of unlock by allowing opening of shops and commercial establishments in most districts,” said the official.
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