The second wave of Covid-19 had a significantly smaller effect on GST collection than the first wave. Following the second wave, monthly GST collections quickly regained. GST collection has improved as a result of the cumulative effect of the quick economic rebound following the pandemic.
EFFECT OF THE FIRST AND SECOND WAVES ON GST COLLECTIONS
Longer lockdowns had a significant influence on GST revenues in the first wave. This was particularly evident in July 2020, when GST collections plummeted by 14.6 percent. Due to revenue deficits, states were also compensated.
