The significant impact on demand and output will have impact on GST collections in March and April due to the corona-virus outbreak. And due to lock-down GST collections may see a sharp drop in March and April. Virtual lock-down and closure of offices across states will have impact on GST collections in March and April even as taxpayers demand extension of date of filing of returns from March 20 to some other date.
Businesses across the board would operate at minimal level. Primarily, sectors such as travel, hotel and food will see a sharp fall in the business. According to an SBI research report, the inoperability analysis for three sectors namely Transport, Tourism and Hotels shows significant impact on demand and hence output. "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." The report further says on an average 25 million and 300 million people use airplanes and trains, respectively each month. "A 10 per cent reduction will lead to loss of revenue of Rs 3,500 crore on a monthly basis."
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. So Overall the collection of GST will Affect as the All the industries in Each & Every sector will close there operation for uncertain period of time as there is no certainty about the pandemic in near future for the whole world. (Source)
