The goods and service tax collection slipped below the Rs 1-lakh-crore mark to Rs 98,202 crore in August in another sign of a slowdown wracking the economy, which only last week reported a six-year low growth rate of 5 per cent in the first quarter of the current fiscal.

This is the second time this year that GST collections have slipped below Rs 1 lakh crore. In June, the collections were at Rs 99,939 crore. The August collection is the lowest so far this fiscal.

Finance ministry data showed that the August 2019 mop-up was, however, 4.5 per cent higher than the Rs 93,960 crore collected in the same month last year.

Abhishek Jain, tax partner, EY, said, “This slight dip in revenue below Rs one lakh crore may be linked to the general slowdown in industry. However, a growth vis-a-vis the same month last year does reflect better GST compliance and payment. The revenue collections this month may also be a factor of consideration in the rate cut agenda, if any, in the upcoming GST Council meeting.”

“The gross GST revenue in August, 2019, is Rs 98,202 crore of which Central GST is Rs 17,773 crore, State GST is Rs 24,239 crore, Integrated GST is Rs 48,958 crore (including Rs 24,818 crore collected on imports) and cess is Rs 7,273 crore (including Rs 841 crore collected on imports),” a finance ministry statement said.

The slowdown has impacted factory output with the auto sector reporting job losses and lesser number of shifts. The real estate sector is seeing muted demand and piling inventory, while economists have blamed it on wrong measures to revive an ailing economy.

The government plans to soon come out with another set of measures to boost demand. It has recently announced a package for NBFCs and the auto sector and proposed consolidation of 10 public sector banks.

The dip in collection could be attributed to the slowdown in manufacturing and the stagnant services sector. Lower collection could also hit the fiscal deficit as things don’t look bright on the direct taxes front too, analysts said.

Tax experts said indirect tax collection in August is generally subdued because of the seasonality factor and, hence, may not be considered as a reflection of slowdown.

Amit Kumar Sarkar, managing partner, Versari Advisors India LLP, said people had concerns about the government meeting the budget target for GST collections. However, collections may pick up from October with the onset of the festive season, he added.