Tepid GST receipts may not impact fiscal math

All states barring Delhi post revenue losses in October

All states barring Delhi reported revenue losses in October on account of the goods and services tax (GST), requiring Rs 7,500-crore compensation from the Centre during the month.

This may not affect the Centre’s fiscal deficit as it will be taken care of by Rs 8,000 crore collected as compensation cess in October. The tax revenue was collected in the month of October and not for October, for which the last date for paying tax is November 20.

The Centre’s revenue collection target may come under slight strain after the GST Council last Friday decided to lower rates on over 200 items.