GST compensation cess mop-up rises for first time in five months

Collection up 6% in Aug YoY; overall mop-up below Rs 1-trn mark for 6th month

Goods and services tax (GST) collections slumped to a three-month low in August, and came in 12 per cent lower year-on-year (YoY), indicating slower recovery in economic activity.  However, compensation cess collections rose for the first time in five months, and 6 per cent YoY, amid the tussle between the Centre and states.

The overall mop-up remained well below the Rs 1-trillion mark for the sixth straight month owing to the pandemic, even as unlocking began in June. GST collections stood at Rs 86,449 crore in August, compared to Rs 87,422 crore in July, according to finance ministry data. It was