On GST compensation option to states, about 20 states have reverted and all these states want Option-1 to borrow Rs. 97,000 crore without the obligation paying interest and principal back. Next GST Council meeting on 5th October shall take this forward. CAG report recently disclosed that for 2018-19, out of the Rs. 2.7 lakh crore received from such levies (of which Rs. 95,081 crore is from GST Compensation Cess), only Rs. 1.64 lakh crore had been transferred to specific reserves and funds, the rest remaining with the Consolidated Fund of India.
Revenue collections have started improving since Covid period was unlocked further from August, 2020 onwards as seen in GST collections. However, there do not seem to be signals of an early recovery which calls for a yet another stimulus package. The gross GST revenue collected in the month of September, 2020 is Rs. 95,480 crore of which CGST is Rs. 17,741 crore, SGST is Rs. 23,131 crore, IGST is Rs. 47,484 crore (including Rs. 22,442 crore collected on import of goods) and Cess is Rs. 7,124 crore (including Rs. 788 crore collected on import of goods). GST Collections have crossed Rs. 95000 crore for the first time in current financial year.
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