GST collection up 28% to ₹1.49L-cr, 2nd highest ever
Collections rose on economic recovery and steps taken to check tax evasion
THIS IS THE SIXTH TIME THAT THE MONTHLY GST COLLECTION CROSSED THE ₹1.40LAKH-CRORE
MARK SINCE THE INCEPTION OF GST, THE FINANCE MINISTRY SAID
Goods and Service Tax (GST) collection rose 28% to touch the second- highest level of ₹1.49 lakh crore in July on the back of economic recovery and steps taken to curb tax evasion, the government said on Monday.
GST collection stood at ₹ 1,16,393 crore in the same month a year ago.
GST, introduced in July 2017, touched a record high of ₹1.68 lakh crore in April, 2022.
This is the sixth time that the monthly GST collection crossed the ₹1.40-lakh-crore mark since the inception of GST and fifth month at a stretch since March 2022, the Union ministry of finance said in a statement.
During July, revenues from import of goods were 48% higher and the revenues from domestic transactions (including import of services) were 22% higher than the revenues from these sources during the same month last year.
Of the ₹1,48,995 crore GST collected in July, Central GST is ₹ 25,751 crore, State GST is ₹32,807 crore, Integrated GST is ₹ 79,518 crore ( including ₹ 41,420 crore collected on import of goods) and cess is ₹10,920 crore (including ₹995 crore collected on import of goods).
The government has settled ₹32,365 crore to CGST and ₹ 26,774 crore to SGST from IGST. The total revenue of Centre and the states in the month of July 2022 after regular settlement is ₹58,116 crore for CGST and ₹59,581 crore for the SGST, it said.
During June 2022, 7.45 crore e- way bills were generated, which was marginally higher than 7.36 crore in May 2022.
The growth in GST revenue till July 2022, over the same period last year, is 35% and displays a very high buoyancy, according to the ministry statement. “This is a clear impact of various measures taken by the GST Council in the past to ensure better compliance. Better reporting coupled with economic recovery has been having a positive impact on the GST revenues on a consistent basis,” the statement said.
GST collection rose 28% to touch the second-highest level of ₹1.49 trillion in July on the back of economic recovery and steps taken to curb tax evasion, the government said on Monday.
Goods and Services Tax ( GST) collection stood at ₹ 1,16,393 crore in the same month a year ago.
GST, introduced in July 2017, touched a record high of ₹1.68 trillion in April, 2022.
This is the sixth time that the monthly GST collection crossed the ₹1.40-trillion mark since the inception of GST and fifth month at a stretch since March 2022, the ministry said in a statement.
During July, revenues from import of goods were 48% higher and the revenues from domestic transactions (including import of services) were 22% higher than the revenues from these sources during the same month last year.
Of the ₹1,48,995 crore GST collected in July, Central GST is ₹ 25,751 crore, State GST is ₹32,807 crore, Integrated GST is ₹79,518 crore (including ₹41,420 crore collected on import of goods) and cess is ₹10,920 crore (including ₹995 crore collected on import of goods).
The government has settled ₹ 32,365 crore to CGST and ₹26,774 crore to SGST from IGST. The total revenue of Centre and the States in the month of July 2022 after regular settlement is ₹58,116 crore for CGST and ₹59,581 crore for the SGST, it said.
During June 2022, 7.45 crore e- way bills were generated, which was marginally higher than 7.36 crore in May 2022.
The growth in GST revenue till July 2022, over the same period last year, is 35% and displays a very high buoyancy, according to the statement.
“This is a clear impact of various measures taken by the GST
Council in the past to ensure better compliance. Better reporting coupled with economic recovery has been having a positive impact on the GST revenues on a consistent basis,” it said.
Commenting on GST numbers, ICRA Chief Economist Aditi Nayar said the collections reported a healthy trend, rising for the second month in a row, with a 28% year- on- year increase.
“With the headline GST collection in July 2022 exceeding the monthly average forecast of ₹1.45 trillion for this year, we foresee an upside of ₹1.15 trillion relative to the FY2023 BE for CGST collections,” she said.
According to Abhishek Jain, partner Indirect Tax, KPMG in India, these consistent high collections indicate recovery from the pandemic hit slowdown and can also be attributed to inflation and tight check and balances implemented by the government.
Further, he said, with rationalisations being implemented subsequent to the recent GST Council meet, these numbers may further go up in the coming months.
The consistent high collection in the past few months seen across major states would provide some comfort to states which have just come out of the guaranteed compensation period and are concerned about their revenue mobilisation abilities, said MS Mani, partner, Deloitte India. On the outlook, Vivek Jalan, partner, Tax Connect Advisory said the GST collection target for FY 22-23 as derived from the government Budgets for 2022 was around ₹12.5 trillion and in five months ₹7.5 trillion has been achieved.