For the first time in the financial year 2019-20, GST (goods and service tax) fell below the Rs one lakh crore mark. The total GST collection for the month of June stood at Rs 99,939 crore.

In April and May 2019, the gross GST collection was Rs 1,13,865 crore and Rs 1,00,289 crore, respectively.

The tax system, that completes its two-year anniversary on Monday, had stabilised to the above one lakh crore mark over the last few months. In order to meet its fiscal deficit target for the year, the central government has to earn GST revenue over Rs one lakh crore every month.

GST was introduced on 1 July 2017 as an improvement over the early multi-layered indirect tax system in India. In the last two years, various revisions have been made to it on recommendations of various industry representatives to simplify its use.

In the previous GST council meeting, it was decided to extend the date for filing annual returns under the tax regime to 30 August from the earlier 30 June deadline. The new one-form GST return filing system, the transistion plan for which was communicated earlier, will be applicable from 1 January, 2020.

The imposition of a penalty of up to 10 percent on entities was also approved for not passing on benefits of GST rate cuts to consumers.