According to official data released on Thursday, GST collections in July rose by 10.3% to over Rs 1.82 trillion (US$ 21.74 billion), primarily driven by domestic transactions in goods and services. This marks the third-highest monthly collection since the indirect tax regime was implemented on July 1, 2017. After accounting for total refunds of Rs 16,283 crore (US$ 1.94 billion), the net GST collection exceeded Rs 1.66 trillion (US$ 19.83 billion), reflecting a growth of 14.4%. The gross GST revenue reached Rs 1,82,075 crore (US$ 21.75 billion), comprising Central GST of Rs 32,386 crore (US$ 3.87 billion), State GST of Rs 40,289 crore (US$ 4.81 billion), and Integrated GST of Rs 96,447 crore (US$ 11.52 billion), along with a compensation cess of Rs 12,953 crore (US$ 1.55 billion). Domestic tax revenue grew by 8.9% to Rs 1.34 trillion (US$ 16 billion), while revenue from imports increased by 14.2% to Rs 48,039 crore (US$ 5.74 billion).
Experts noted that while gross GST revenues showed a 10.3% increase, the growth rate for imports outpaced that of domestic supplies. Mr. MS Mani from Deloitte India highlighted the slowdown in refunds, contributing to a net increase of 14.4% compared to a gross increase of 10.4%. With the festive season approaching, further increases in collections are anticipated. Additionally, Mr. Saurabh Agarwal from EY India pointed out a surge in tax collections from regions like Nagaland and Manipur, suggesting heightened economic activity. However, a potential decline in collections may occur during August due to the monsoon season.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
