• Notification Date: 11-09-2023
• Notification No: N/A

Impact of over 120 days of Ethnic Clash GST Collection to Drop

The more than 4-month-old violent conflict between communities is likely to make a dent on the State's share of GST (Goods and Services Tax) revenue collection this financial year. 

Manipur's share of the GST revenue collection may fall by 20-30 percent from the previous financial year, said a highly placed source in the Department of Taxes. 

In the previous financial year, the State collected GST revenue of more than Rs 1,400 crore. However, the State's share of GST this financial year may not reach this mark. The share of GST is expected to fall by 20-30 percent, said the source. 

The GST is a unified tax system that replaces multiple indirect taxes levied by both the Central and State Governments. Under GST, both the Central and State Governments share the authority to levy and collect taxes on goods and services. 

The GST system follows a dual structure, comprising Central GST (CGST) and State GST (SGST), levied concurrently by the Centre and the State Government, respectively. 

The source in the Department of Taxes said the Goods and Services Tax forms the "backbone" of Manipur's revenue. 

The sale of goods and services in Manipur have been affected by the unrest since May 3.   

The law-and-order situation, coupled with the internet ban imposed all over Manipur since May 3 have affected all kinds of businesses. 

The internet ban has shut many businesses dependent on the service and has severely affected the e-commerce sector. 

Daily curfew and the unrest have shut markets, shops and the services sector. 

All major markets in Imphal, Churachandpur and elsewhere including the border town of Moreh, which is a hub for traders, have been shut or affected by the present conflict. Shops are unable to sell goods as usual. 

Moreover, the prevailing law and order situation and the blockade imposed on National Highways have affected transportation of goods. 

All these factors have had a severe impact on the GST revenue collection, said the source in the Department of Taxes.