Coronavirus lockdown: GST collections may see a sharp drop in March and April

Due to pandemic, closure of major offices across states is going to affect GST sales in March and April. The taxpayers are already asking for extension of dates for GST return filings. The travel, hotel and food industry will see a sharp fall in the business. According to SBI report, “On an aggregate basis, we estimate that the impact of a 5 per cent inoperability shock could be 90 basis point on GDP from Trade, Hotel and Transport to Storage and Communication segment. It could be spread over 2019-20 and 2020-21, with a larger impact in the latter year.” Trade, hotels, transport, communication and broadcasting were likely to generate Rs 33 lakh crore worth of value of services in the current financial year. This number might be revised downward, impacting GST collections from this segment.

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