GST SHORTFALL OF STATES MAY BE LOWER BY ₹40,000 CRORE

NEW DELHI: The GST revenue shortfall faced by states is likely to reduce by about ₹40,000 crore in the current fiscal on improved collections over the past four months, an official said.

The sharp decline in GST collections was estimated to lead to ₹1.80 lakh crore shortfall in GST revenues of states. This includes ₹1.10 lakh crore revenue loss on account of GST implementation and ₹70,000 crore on account of pandemic.

The Centre had set up a special window to borrow funds and pass on to the states for meeting the ₹1.10 lakh crore GST revenue loss.

The official said that improved goods and services tax (GST) collections could bring down the total shortfall to around ₹1.40 lakh crore.

“We have done some calculations which show that the shortfall could be lower by about ₹30,000-40,000 crore in the current fiscal,” the official told PTI. The official further said that ₹1.10 lakh crore would be borrowed through the special window as planned and higher mop-up would be utilised to compensate for the loss of revenue due to the Covid-19 pandemic.