The government’s gross GST revenue in April could fall as much as 30%-40% of the average monthly revenue collections achieved was around ₹1 lakh crore. The situation could persist in May too and hit may collections as well.
FMCG firms have seen minimal impact on sales and would also file monthly returns before the original deadline of 20th April 2020, even though firms above ₹5 crore turnover have been provided with an additional 15 day period for compliance.
The GST Council has estimated that around 7,000 GST registered firms contribute over 90% of the revenue. Other smaller firms, which constitute over 1.2 crore GST taxpayers, are likely to defer their compliance to the last week of June, as allowed by the government without any interest, penalty and late fees as a relief measure.
Although the economy is under lockdown, the tax and regulatory division of big businesses can access real-time transactional data from the cloud. Cloud computing technologies permit such professionals to work anywhere, anytime and file taxes on time. IGST on imports recorded its lowest-ever level in March.
FMCG companies seen a big jump in sales due to panic buying in the last week of March, but their manufacturing units have largely remained operational due to high level of automation. The other logistical problems related to movement of goods was also rather limited for these companies as their products were categorised as essential. As a result, GST revenue at least from this sector is likely to remain unaffected.