GST collection dips in JK

GST collection dips in JK
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Signifying the decline in economic activities in Jammu and Kashmir post imposition of lockdown in view of pandemic COVID19, the newly created Union Territory's tax collection has dipped by estimated 8 percent.

According to official sources, Goods and Services Tax revenue collection has hit badly in J&K  due to situations arising out of COVID19 and restrictions being in place on economic activities.

"There is definitely an impact on revenue collection of the government due to the current situation, As businesses remained closed there was no economic activity leading to shortfall in revenue targets set by the government. As per the current preliminary trends we are expecting a shortfall in GST collections by 8 percent," said a senior official. Commissioner State Taxes Department P K Bhat said "there has been a decline in import activities which have an impact on the GST collection. Although by September we have been able to give exact figures about the collection, but definitely there will be an impact on revenue collection due to the ongoing situation."

"Post lockdown, GST return filing dates were extended, therefore at this moment we don't have a clear picture about the revenue," he said adding that " the latest figure by  GST revenue collection across India in June stood at Rs 90,917 crore. " GST revenue collection in June stood at Rs 90,917 crore, up from Rs 62,009 crore mopped up in May and Rs 32,294 crore in April.

The goods and services tax (GST) mop up was 9 per cent lower on a year-on-year basis in June, while it was 62 per cent down in May and fell 28 per cent in April.

Meanwhile, the business community in Kashmir is complaining of continuous slump in economic activities despite the government allowing partial resumption of businesses. However they argue that there is a liquidity crunch coupled with an economic slowdown.

"Kashmir's business community is facing extended lockdown since August2019.  Our losses are piling at the same time there is a liquidity crunch in the market which is making it difficult for us to sustain our businesses. In this situation, our tax collections are bound to go down unless government comes up with a economic revival package as the business community of Kashmir can't be treated in same way as rest of the country as they we are facing lockdown since mid-march but we are facing this situation since last year," said President, Kashmir retailers association Farhan Kitab..

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