Goods and Services Tax (GST) ,details of reasons for revenue shortfall
 |
212. MS. S. JOTHIMANI:
GST Shortfall
Will the Minister of FINANCE be pleased to state:
(a) the details of reasons for revenue shortfall in the Goods and Services Tax (GST);
(a) & (f) Total net GST target (for centre, as per receipt budget document) has been pegged at Rs. 6,90,500 crore for 2020-21 in the general Union Budget, 2020-21. The actual net GST collection for the centre till August, 2020 is Rs. 1,81,050 crore, which shows 26.2% achievement (till August, 2020) of BE 2020-21 (the details enclosed at annexure-I).
The BE estimates for FY 2020-21 of GST in the Union Budget, 2020-21 were projected on the basis of assumption of higher growth of GDP, however as per CSO, MoS&PI press release [on 31st August, 2020], the Nominal GDP for Q1 (April-June), 2020-21 shows a contraction of 22.6% which is one of the major reason for revenue shortfall in GST. Other reasons for low tax collection inter-alia include nationwide lockdown measures implemented since March 2020 consequent to global Covid-19 pandemic which led to limited economic activities, extension of GST return filings timelines without payment of interest, late fee or penalty etc.
(b) & (c): As per provisions in Section 7 of the GST (Compensation to States) Act, 2017 loss of revenue to the States shall be calculated and released at the end of every two months’ period, for 5 years. Accordingly, admissible GST compensation for the period April, 2019 to March, 2020 has been released to all States/ UTs including Tamil Nadu. Due to short GST Compensation Cess collection in the current financial year, GST compensation is yet to be paid for the period April-July, 2020.
Accordingly, issue of pending GST compensation and future course of action to meet the GST compensation shortfall has been discussed in 41st GST Council meeting on 27.08.2020 wherein States were given two options to meet their GST compensation shortfall for current FY from market borrowing. It was also decided that States will give their preference views thereon. Thereafter on finalization of scheme, the states can choose either Option 1 or Option 2 and accordingly, their compensation, borrowing, repayment etc. will be dealt as per their individual choice. The Chief Minister of Tamil Nadu vide his letter dated 31.8.2020 had requested the Hon’ble Prime Minister that Government of India can raise the required funds as a loan and lends it to the GST compensation fund against future cess receipts, so that the GST compensation can be paid in full to the States in 2020-21.
(d) State wise detail of GST compensation disbursed is as per Annexure II.
(e) Section 18 of Constitution (One Hundred and First Amendment) Act, 2016 provides for payment of GST compensation to the states, on the recommendation of the GST Council, for loss of revenue arising on account of implementation of GST for a period of five years.
(f) The details of decline in GST revenue (domestic) State-wise are as per Annexure-III
ANNEXURE I
GST Collection since inception
|
Tax |
2017-18 |
2018-19 |
2019-20 |
2020-21 |
||||
|
Revised |
Actual |
Revised |
Actual |
Revised |
Actual |
Budget |
Actual[April- |
|
|
CGST |
221400 |
203261 |
503900 |
457534 |
514000 |
494070 |
580000 |
125308 |
|
IGST |
161900 |
176688 |
50000 |
28945 |
– |
9204 |
– |
27580 |
|
GST Compensation Cess |
61331 |
62612 |
90000 |
95081 |
98327 |
95551 |
110500 |
28163 |
|
Net |
444631 |
442561 |
643900 |
581559 |
612327 |
598825 |
690500 |
181051 |
Source: Receipts Budget, PrCCA, CBIC
Annexure II
Details of GST Compensation
(Rs. in crore)
|
GST Compensation released in |
||||||
|
S.No |
Name of |
FY 2017- 18 |
FY 2018- 19 |
FY 2019- 20 |
FY 2020- 21 |
Total |
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
|
1 |
Andhra Pradesh |
382 |
0 |
1840.76 |
1187 |
3410 |
|
2 |
Arunachal Pradesh |
15 |
0 |
0.00 |
0 |
15 |
|
3 |
Assam |
886 |
466 |
878.97 |
488 |
2719 |
|
4 |
Bihar |
3041 |
2571 |
3524.78 |
2265 |
11402 |
|
5 |
Chattisgarh |
1483 |
2261 |
3081.44 |
1877 |
8702 |
|
6 |
Delhi |
157 |
4182 |
7436.00 |
2160 |
13935 |
|
7 |
Goa |
252 |
476 |
818.70 |
329 |
1876 |
|
8 |
Gujarat |
3687 |
6149 |
10646.52 |
5822 |
26305 |
|
9 |
Haryana |
1199 |
2820 |
5453.43 |
2522 |
11994 |
|
10 |
Himachal Pradesh |
539 |
2037 |
1877.33 |
1018 |
5471 |
|
11 |
J & K |
1137 |
1462 |
2279.28 |
1230 |
6108 |
|
12 |
Jharkhand |
1265 |
1029 |
1531.82 |
859 |
4685 |
|
13 |
Karnataka |
6246 |
10754 |
14496.90 |
7266 |
38763 |
|
14 |
Kerala |
1772 |
2884 |
5575.04 |
3514 |
13745 |
|
15 |
Madhya Pradesh |
2511 |
2866 |
4530.78 |
2600 |
12508 |
|
16 |
Maharashtra |
1488 |
8330 |
15018.13 |
6837 |
31673 |
|
17 |
Manipur |
24 |
0 |
0.00 |
0 |
24 |
|
18 |
Meghalaya |
124 |
73 |
101.45 |
65 |
363 |
|
19 |
Mizoram |
0 |
0 |
0.00 |
0 |
0 |
|
20 |
Nagaland |
0 |
0 |
0.00 |
0 |
0 |
|
21 |
Odisha |
2019 |
3390 |
3928.78 |
1917 |
11255 |
|
22 |
Puducherry |
333 |
592 |
862.29 |
338 |
2125 |
|
23 |
Punjab |
4037 |
7129 |
8804.54 |
6310 |
26281 |
|
24 |
Rajasthan |
2598 |
2176 |
4439.53 |
2675 |
11889 |
|
25 |
Sikkim |
6 |
0 |
0.00 |
0 |
6 |
|
26 |
Tamil Nadu |
632 |
3151 |
8922.03 |
5442 |
18147 |
|
27 |
Telangana |
169 |
0 |
2263.16 |
791 |
3223 |
|
28 |
Tripura |
129 |
155 |
171.00 |
159 |
614 |
|
29 |
Uttar Pradesh |
2124 |
308 |
5179.52 |
3943 |
11555 |
|
30 |
Uttarakhand |
1283 |
2037 |
2477.38 |
1452 |
7249 |
|
31 |
West Bengal |
1608 |
1977 |
4358.74 |
2479 |
10423 |
|
Total |
41146.00 |
69275.00 |
120498.29 |
65546.20 |
296465.49 |
|
[post_ads]
Annexure III
GST revenue, State-wise April-Aug 2020-21 YoY
|
State |
State/UT |
2019-20 |
2020-21 |
Decline |
|
1 |
Jammu and Kashmir |
1680 |
1169 |
-30.5 |
|
2 |
Himachal Pradesh |
3390 |
2219 |
-34.5 |
|
3 |
Punjab |
6497 |
4580 |
-29.5 |
|
4 |
Chandigarh |
821 |
578 |
-29.5 |
|
5 |
Uttarakhand |
6327 |
3760 |
-40.6 |
|
6 |
Haryana |
23975 |
15869 |
-33.8 |
|
7 |
Delhi |
18524 |
11907 |
-35.7 |
|
8 |
Rajasthan |
13576 |
10066 |
-25.9 |
|
9 |
Uttar Pradesh |
27170 |
19563 |
-28.0 |
|
10 |
Bihar |
5294 |
4081 |
-22.9 |
|
11 |
Sikkim |
916 |
855 |
-6.7 |
|
12 |
Arunachal Pradesh |
235 |
199 |
-15.4 |
|
13 |
Nagaland |
122 |
136 |
11.5 |
|
14 |
Manipur |
162 |
120 |
-25.8 |
|
15 |
Mizoram |
128 |
72 |
-43.6 |
|
16 |
Tripura |
276 |
270 |
-2.1 |
|
17 |
Meghalaya |
645 |
459 |
-28.9 |
|
18 |
Assam |
4062 |
3171 |
-21.9 |
|
19 |
West Bengal |
18389 |
11781 |
-35.9 |
|
20 |
Jharkhand |
10091 |
5967 |
-40.9 |
|
21 |
Odisha |
13011 |
9889 |
-24.0 |
|
22 |
Chhattisgarh |
10266 |
8549 |
-16.7 |
|
23 |
Madhya Pradesh |
11626 |
9041 |
-22.2 |
|
24 |
Gujarat |
32503 |
22049 |
-32.2 |
|
25 |
Daman and Diu |
483 |
270 |
-44.0 |
|
26 |
Dadra and Nagar Haveli |
777 |
482 |
-38.0 |
|
27 |
Maharashtra |
75910 |
52154 |
-31.3 |
|
29 |
Karnataka |
34362 |
24763 |
-27.9 |
|
30 |
Goa |
1788 |
1012 |
-43.4 |
|
31 |
Lakshadweep |
7 |
6 |
-17.7 |
|
32 |
Kerala |
7861 |
5220 |
-33.6 |
|
33 |
Tamil Nadu |
30528 |
19797 |
-35.2 |
|
34 |
Puducherry |
758 |
544 |
-28.2 |
|
35 |
Andaman and Nicobar Islands |
151 |
103 |
-31.5 |
|
36 |
Telangana |
15949 |
11762 |
-26.3 |
|
37 |
Andhra Pradesh |
11187 |
8237 |
-26.4 |
|
38 |
Ladakh |
35 |
– |
|
|
97 |
Other Territory |
807 |
617 |
-23.5 |
|
99 |
Center Jurisdiction |
399 |
629 |
57.6 |
|
Grand |
390650 |
271979 |
-30.4 |
Source -lok sabha