GST collections rise 10% to ₹1.75 lakh crore in August; reflect higher domestic consumption
The GST collection figures reflect higher domestic consumption; gross GST revenues from domestic transactions grew 9.2% to about ₹1.25 lakh crore
New Delhi, Sep 1 (PTI) Gross GST collections in August grew 10 per cent to about Rs 1.75 lakh crore, reflecting higher domestic consumption.
As per the government data released on Sunday, gross GST revenues from domestic transactions grew 9.2 per cent to about Rs 1.25 lakh crore.
Revenues from import of goods were up 12.1 per cent to Rs 49,976 crore.
In July, gross Goods and Services Tax (GST) mop-up was Rs 1.82 lakh crore, while in August last year it was Rs 1.59 lakh crore.
M S Mani, Partner, Deloitte India, said a 10 per cent increase in collections on a year-to-month basis at the start of the festive season for the year indicates that consumption is robust and will only improve further in the coming festival months.
"This would give renewed confidence that the collection targets for the year would be achieved. There are some differences in the GST collection increases across major states which may need a deep dive," Mani said.
Refunds worth Rs 24,460 crore were issued during August, 2024, which is 38 per cent more than the refunds issued in the year-ago period.
After adjusting refunds, net GST revenue increase was 6.5 per cent at Rs 1.5 lakh crore during the month under review.
EY Tax Partner Saurabh Agarwal said the continued growth in gross GST collections indicate a robust economy.
"The government's commitment to reduce working capital costs for businesses facing inverted duty structure is demonstrated by the higher domestic GST refunds. By rationalising rates, the government aims to address this issue over time," Agarwal said.
Mani further said the ability of large states like Maharashtra, Karnataka, UP, MP and Haryana to record double digit increases in collections once again indicates the robust consumption in these states accompanied by the tax authorities measures to improve compliance and crack down on evasion.
However, the single digit increase in large states like Gujarat, Andhra Pradesh and Tamil Nadu would engage the attention of the tax authorities in these states, Mani added.
KPMG Indirect Tax Head & Partner Abhishek Jain said the GST collections seem to have stabilised around Rs 1.75 lakh crore now.
"With the kick-off to festivities, the next few months is expected to witness a further surge," Jain added. PTI
