GST collection drops to five-month low at Rs 93,960 crore in August

The Finance Ministry on Saturday said that the GST collection in the month of August dropped to Rs 93,960 crore from Rs 96,483 crore in the previous month. The total number of GSTR (goods and services tax returns) 3B for the month of July up to August 31, 2018, however, surged to 67 lakh, slightly higher than 66 lakh returns for the month of June filed up to July 31, 2018, the ministry said.

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The revenue collection in August is slightly lower than July collection of Rs 96,483 crore, and June collection of Rs 95,610 crore. The ministry said that postponement of the sale of items for which tax rate was reduced was probably the reason behind lower revenue.

"Since it would have taken some time for the market to pass on the benefit of reduced taxes, consumers would have postponed their decision to buy expecting the benefit," the ministry said in its statement.

"The actual impact of the reduction of the rate of taxes would be observed only from next month onwards as the rate reduction would have got affected only in the last few days of the month," it added.

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Another, reason behind the lower GST collection could be the extension of the last date of filing return of July 2018, in Kerala in wake of the floodings.

(With inputs from agencies)