Trade volume declines, GST collection drops

By Our Staff Reporter
IMPHAL, May 7: The average trade volume at Khwairamband Keithel, the biggest market centre of the State, has dropped sharply, and it has severely dented the State’s GST (Goods & Services Tax).
According to an official source in the State’s Taxation Department, the monthly GST collection has plummeted to Rs 70-80 crore.
One main factor for the sharp decline in the monthly GST collection is drastic reduction in the average trade volume of Khwairamband Keithel.
At the end of the Covid-19 pandemic, the State’s GST collection was improving steadily and it was on the verge of reaching the normal amount when a violent conflict erupted in the State on May 3, 2023.
In the wake of the violent conflict, Khwairamband Keithel virtually went dead.
Khwairamband Keithel located in the heart of the State capital is the favourite market for a vast majority of the people to purchase whatever they need.
Even though there are markets at the district headquarters, vast majority of the people prefer to buy their needs and other goods at Khwairamband Keithel.
On account of the violent conflict which erupted on May 3 last year, a large number of people from Churachandpur, Moreh, Kangpokpi and Saikul are no longer purchasing anything from Khwairamband Keithel. This is one primary factor for the sharp decline in the Khwairamband Kei-thel’s average trade volume, said the source.
The sharp decline in the average daily trade volume of Khwairamband Keithel has severely affected the GST collection.
Before the violent conflict, the average monthly GST collection was around Rs 120 crore. Now it has declined to Rs 70-80 crore, said the source.
Elaborating on the factors responsible for the decline in GST collection, the official source said that sale of automobiles which contributed 28 per cent of GST has dropped considerably, the number of wholesalers have come down, service sector has almost collapsed, a large section of consumers has disappeared from the scene and very few tourists are coming to the State.
On the other hand, economic activities of the people have been shrinking alarmingly thereby giving a severe blow to the State’s economy.
The number of customers  at Khwairamband Keithel is being limited to those people who come in the morning to buy basic necessities like vegetables.  The unfolding situation will have domino effect on the State’s economy, added the source.