GST Collections For July Fall Below The Rs 1 Lakh Crore Mark

India's slowing growth and consumption has hit the government's GST collections as well.

Integrated GST is settled between the states and the central government, based on consumption in the respective state. From the IGST collected during the month, Rs 23,165 crore was transferred as Central GST and Rs 16,623 crore was settled as State GST. Total revenue earned by the central and state governments after the settlement was Rs 40,898 crore and Rs 40,862 crore, respectively, the statement said.

The central government will compensate states once in every two months for the losses they incur in the first five years of the implementation of GST. The central government has released Rs 27,955 crore to the states as GST compensation for the months of June-July, 2019, as against Rs 17,789 crore transferred in April-May.