Odisha Anticipates Tepid GST Collection in June

The second leg of the lockdown, implemented to contain the rising tide of COVID cases across Odisha, is likely to have an effect on the state’s GST collections (SGST) in June. The lockdown, which has been in effect since the first week of May, has severely dented the retail, tourism and hospitality industry and led many small businesses to the brink of collapse.

Sources in the State GST Commissioner’s office noted that a clear picture would be available after June 20, which is the last date for filing returns. However, the silver lining is that despite a slash in absolute metrics, the SGST collection for June is expected to be higher than that in the same month last year. This is down to the temporary shutdowns that major industries such as manufacturing, transport, mining faced in 2020 along with the hospitality and services sector. Comparatively, the government has ensured that the present lockdown does not derail the transportation of goods or impede industrial production activity in any capacity.

Since the state government has allowed industrial and mining operations and free movement of goods, the collection may not be as low as June last year,” a senior government official noted. Odisha’s monthly GST collection is assumed to be around Rs. 700 – Rs. 800 crores, with most of it coming from industrial production. The first quarter in FY2020-21 saw a sharp decline in SGST revenues collected.

However, with the opening up of various facilities in phases, the revenue income is projected to pick up. “We expect an improvement in the collection with the state government starting the process of unlocking by allowing opening of shops and commercial establishments in most districts,” said the official.

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