New Delhi: GST collections dropped to Rs 93,960 crore in August from Rs 96,483 crore in July and Rs 95,610 crore in June , the finance ministry said on Saturday.
The total number of GSTR (goods and services tax returns) 3B filed for the month of July up to 31 August stood at around 67 lakh, slightly higher than 66 lakh returns for the month of June filed up to 31 July, the ministry said in the statement.
Explaining the reasons for the decline, the ministry said one of the main factors was probable postponement of sale of items for which tax rate was reduced by the GST Council in its meeting on 21 July. The rate cut was effective July 27.
“Since it would have taken some time for the market to pass on the benefit of reduced taxes, consumers would have postponed their purchase decisions expecting the benefit. The actual impact of reduction of tax rates would be observed only from next month as the rate reduction would have got affected only in the last few days of the month,” the ministry said.
Also, the last date of filing returns, 31 July, 2018 was extended up to 5 October, 2018 for businessmen in Kerala due to the floods.