Updated Dec 30, 2020 | 07:00 IST
As GST shows the brightest sign of recovery among all revenue streams, a recent study by NIPFP projects GST revenue for 2020-21. Representational image
The spread of COVID-19 is on an apparent decline in India, the economic impact of the pandemic is still evolving, as new waves of COVID-19 infection are striking locally. Any estimate on revenue impact, thus, may not be free from shortcoming and constraints. However, as GDP data of last two quarters is now available, and as GST shows the brightest sign of recovery among all revenue streams, a recent study by NIPFP projects GST revenue for 2020-21. The paper further delves into the issue of compensation to states in the case of revenue shortfall enshrined in the prevailing law, and presents an estimate of GST revenue shortfall that Indian states may likely to face in 2020-21.