COVID-19: ‘Act of God’ may result in contraction in economy : Finance Minister Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman said that the Coronavirus pandemic has severely impacted the collection of Good and Service Tax(GST). The shortfall of GST collection is Rs 2.35 lakh crores.

Ajay Bhushan Pandey, Revenue Secretary at the Finance Ministry said “The annual GST compensation requirement is estimated to be around Rs 3 lakh crore, and cess collection is expected to be around Rs 65,000 crore, leaving us with an annual compensation gap of Rs 2.35 lakh crore,”.