The increase in revenue in the Goods and Services Tax (GST) collections since September this year 2020, the shortfall of INR Rs 2.35 lakh crore has been expected to shrink significantly and the growth momentum is expected to continue in the remaining five months, the officials said.

Odisha received its second share of GST compensation

The overall positive GST collections since September for the nation has been witnessed. The number of states having negative year-on-year revenue growth have also reduced from 15 in September to 7 in October, Union finance ministry officials informed. The revenue data comparison between the previous two months of the states shows 50% reduction in the number of States/UTs. A finance ministry official said, “The trend, if sustained in the next five months, would reduce the gap between the protected revenue and actual revenue for FY-21 by about Rs 35,000 crore". 

Finance Ministry releases Rs6,000-cr as 2-tranche to 16 States on GST compensation

A 10% year on year growth was seen. The offcial data reveals the 15 states/UTs recorded negative growth in the month of September compared to September 2019 were Chandigarh (-10% drop in GST revenue), Delhi (-7%), Sikkim (-49%), Arunachal Pradesh (-20%), Manipur (-19%), Mizoram (-42%), Tripura (-3%), Meghalaya (-6%), Daman and Diu (-83%), Karnataka (-5%), Goa (-23%), Lakshadweep (-58%), Puducherry (-1%), Telangana (-2%) and other territory (-16%). Apart from that the annualised growth in revenue collections in three states – Uttar Pradesh, Maharashtra and Ladakh (because the union territory was created this financial year) is stagnant in September 2020. Only 7 states/UTs show contraction in revenue collections in the month of October 2020, Chandigarh (-3%), Delhi (-8%), Sikkim (-5%), Daman and Diu (-91%), Lakshadweep (-55%), Andaman and Nicobar Islands (-42%) and other territory (-28%).

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