Goods and Services Tax (GST) collections for March 2020 is at 8% decline. Not only this, auto sales in the March month for Maruti Suzuki , which is the largest maker of India ,were down almost by 50% due to lockdown. GST collections in March fell to ₹97,597 crore. Apart from Maruti,Tata Motors, the leading maker of trucks and buses, saw a downfall in sales by 87%. Sales at Hyundai Motor were down 47% while for Mahindra & Mahindra by 88%.
Total GST for the financial year 2019-20 has increased by 3.8% to ₹12,22,131 crore compared to ₹11,77,369 crore collected in 2018-19.
Out of the gross GST revenue for March 2020, the share of central GST is ₹19,183 crore, state GST is ₹25,601 crore, integrated GST is ₹44,508 crore (including ₹18,056 crore collected on imports) and cess is ₹8,306 crore.
There is around 7% reduction in filing of GSTR 3B returns over last month. The import of goods has also shown a negative growth of 23% as compared to March 2019. It has also played a vital role to lower the GST collections.
The impact of coronavirus lead to major lockdown of most economies is expected to continue to be a drag for global growth and India will also be impacted. International Monetary Fund (IMF) managing director Kristalina Georgieva said last week that the outlook for global growth in 2020 is negative and remarked it a recession. Moody’s Investors Service slashed India’s economic growth projection for calendar 2020 from 5.3% to 2.5% and ICRA Ltd estimated India’s growth at 2% for FY 2020-21.