GST Collections at ₹1.75 Lakh Crore in August, Up 10% YoY

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IANS | 02 Sep, 2024

The goods and services tax (GST) collections stood at Rs 1.75 lakh crore in the month of August, around 10 per cent rise from Rs 1.59 lakh crore in GST revenue in August last year, government data showed on Sunday.

For the first five months of the fiscal year, collections were up 10.1 per cent at Rs 9.14 lakh crore.

The gross GST revenues from domestic transactions grew 9.2 per cent to about Rs 1.25 lakh crore, as revenues from import of goods were up 12.1 per cent to Rs 49,976 crore compared to the previous year’s figures.

Net domestic revenues, adjusting for refunds, were 4.9 per cent higher at Rs 1.11 lakh crore, while IGST revenues were 11.2 per cent higher.

Net GST revenue till August was Rs 8.07 lakh crore, 10.2 per cent higher than the previous year.

The GST council is likely to meet on September 9, where a decision on GST on life insurance is likely to be taken, according to reports.

Dr Manoranjan Sharma, Chief Economist at Infomerics Ratings, said that GST revenue collection for August 2024 stood at Rs 1,74,962 crore, marking a 10 per cent increase compared to Rs 1,59,069 crore collected in August 2023.

“When compared to July 2024, which had GST collections of Rs 1.65 lakh crore, the August figures may seem a monthly decrease in growth terms on both a year on year and sequential basis,” Sharma said.

However, “this would not be an appropriate way of looking at things in view of the buoyancy in both direct and indirect taxes, tax slab rationalisation during the seven-year period, plugging of leakages and loopholes in the indirect tax system and steady GDP growth of 7 per cent or even more over the long haul,” he explained.

In other words, when considered in a proper historical and comparative perspective, the GST collection has risen remarkably since its inception.

According to analysts, it is difficult to record a consistently high growth rate on a constantly rising and much higher base and this base effect needs to be factored in for a comprehensive assessment of the evolving GST collection scenario in India.