Even after the unlock, Chandigarh’s economy has not been able to get back fully on track. The gross Goods and Services Tax (GST collection) collection in December has decreased by 6% compared to the previous year. This year, Chandigarh Administration has collected GST of ₹158 crore in December. Last year, it was ₹168 crore.
The matter of GST collection in December is a matter of concern as the central government and administration have given many large-scale concessions during the lockdown. All rules of lockdown have been scrapped since November.
Due to the complete lockdown in April and May, the administration had a loss of ₹342 crore in tax collection. However, the neighbouring states of Punjab and Haryana have recorded an increase in GST collections compared to the previous year.
In April, the administration was able to collect only ₹14 crore. In May, ₹42 crore was collected, ₹73 crore in June, ₹109 crore in July, ₹139 crore in August, ₹141 crore in September, ₹152 crore in October and ₹141 crore in November. All economic activity remained closed in April and May, which resulted in a huge reduction in tax collections. It is worth noting that GST is levied on petrol and alcohol, excluding others. Since the lockdown, GST collections have been witnessing a drop in the city every month compared to last year.
