IGST Current Affairs - 2020

GST Revenue Collection Improves significantly in the month of June 2020

Rs 90,917 crore is the gross GST (Goods and Services Tax) revenue collected in the month of June 2020. The amount Rs 90,917 crores is 91 percent of GST revenue collected in the month of June in 2019.

Breakdown of GST Revenue Collection for June 2020

  • Central GST (CGST): Rs 18,980 crore
  • State GST (SGST): Rs 23,970 crore
  • Integrated GST (IGST): Rs 40,302 crore (includes-on import of Goods Rs 15,709 crore collected)
  • Cess: Rs 7,665 crore (includes-on import of goods Rs 607 crores collected)

GST Revenue Collection in First Quarter of FY 2020-21

The GST revenue collected in the first quarter of the Financial Year (FY) 2020-21 is 59 percent of the GST revenue collected during the first quarter of the 2019-20 financial year.

Apart from the economic impact experienced due to the nationwide lockdown, the GST revenue collection in the first quarter of FY 2020-21 was also affected due to the relaxations provided for filing up of GST returns and payment of taxes by the Government.

Month-wise GST Revenue Collection in First Quarter of FY 2020-21

  • In April 2019 GST Revenue Collection was of Rs 113, 866 crore while in April 2020 it was 32,294 crore
  • In May 2019 GST Revenue Collection was Rs 100,289 crore while in May 2020 it was Rs 62,009 crore
  • In June 2019 GST Revenue Collection was Rs 99,940 crore while in June 2020 it was Rs 90,917 crore

GST Council meet

On June 12, 2020, the Finance Minister Nirmala Sitaraman chaired the 40th GST Council Meet.

Highlights

The minister at the meet announced that no late fee will be charged from the taxpayers (small taxpayers) that had filed GST returns between July 2017 and January 2020. This is being done as there is lot of GST return filing that is pending in the period.

The Council has capped maximum late fee for those that have tax liability for non-filing of GST-3B returns.

Reduction in interest

For the small taxpayers, whose aggregate turn over is Rs 5 crore, the rate of interest for filing GST return for February, March and April, 2020 and beyond July 6, 2020 is to be reduced from 18% to 9% per annum. Also, for the small taxpayers whose turnover is up to Rs 5 crore, waiver of late fees is to be provided if they file the GSTR-3B form for the supplies that were affected in May, June and July by September 2020.

Integrated Goods and Services Tax

The Finance Minister Nirmala Sitaraman announced that a new sharing formula has been implemented. Under the new formula, the centre can release funds to the states without making adjustments. Before introducing formula based IGST sharing, there was huge accumulation of IGST that led to sharing of accumulated IGST in two halves.

This step will also help the Centre to clear the bills of compensation that are pending, in the period of December, January and February.