The dismal sales of automobiles and consumer durables and off-season in the tourism industry have brought about stagnation in Goa’s GST mop-up.
GST collection in August 2019 stood at Rs 239 crore compared to Rs 237 in the same month last year, according to the commercial taxes department.
Over a period of three months – from June 2019 to August 2019 – the tax collection was similarly static at Rs 769 crore vis-à-vis Rs 763 crore, in corresponding months of 2018.
Speaking to ‘The Navhind Times’, state GST commissioner Deepak Bandekar said the poor GST collection reflects the economic situation. “There have been no downward revisions in tax rates which means that the sluggishness in tax collections is definitely due to drop in sales. There has been a decrease in purchases of automobiles which has been a major contributor to the GST kitty. Because of the slowdown in economy we are not getting the expected growth in the GST mop-up,” Bandekar explained.
The slump has coincided
with the lean season in tourism, he said, adding that the local hospitality industry is not
contributing to GST. “From October onwards we are
hopeful that tax collections will revive as tourism picks up. The second half of the year accounts for 60 per cent of the state’s tax collections,” the commissioner said.
Goa is worse off on the GST front in August 2019 as
compared to the national collection of Rs 98,202 crore, which shows a slight
growth of 4.5 per cent over
The local automobile dealers and sellers of household appliances have recorded lackluster Ganesh Chaturthi sales, and are demanding tax cuts to boost buying sentiments in the approaching festivals.
The state’s cumulative GST collection is estimated at Rs 1157 crore for the April-August months of the current financial year.
A GST council meeting has been scheduled for the first time in the state on September 20.
About 150 delegates comprising state GST ministers, tax commissioners and government officials as well as Union Finance Minister Nirmala Sitharaman are expected to attend for the meeting.
Bandekar opined that the GST meeting is likely to see several industries seeking tax cuts.