June GST mopup at `1.44 L crore; mfg growth slows

Crossing the Rs 1.40-lakh crore mark for fifth time, the monthly goods and services tax (GST) revenue mop-up for the month of June surged by 56 per cent to nearly Rs 1.45 lakh crore on an annual basis.

The monthly GST collections, which had totalled Rs 1.41 lakh crore in May, stayed above the Rs 1.40 lakhcrore level since March, finance minister Nirmala Sitharaman said while celebrating the 5th GST Day on Friday.

The minister's statement came two days after the 47th GST Council meeting announced an increase in rates and withdrawal of some exemptions from July 18.

Sitharaman said, "The Rs 1.40 lakh crore is the "rough bottom line". Our monthly GST collections are not going below that."

The government said in a separate statement that the collection in June 2022 is not only the second-highest but also has broken the trend of being low collection month as observed in the past. "Coupled with economic recovery, anti-evasion activities, especially action against fake billers have been contributing to the enhanced GST. The gross cess collection in this month is the highest since the introduction of GST," the statement said.

For June, the CGST revenue stood at Rs 25,306 crore, SGST at Rs 32,406 crore, IGST Rs 75,887 crore and the GST compensation cess at Rs 11,018 crore.

"The sharp on-year growth of 56 per cent in headline GST revenues benefits from the economic recovery, and has also been boosted by the low base and the transmission of elevated commodity prices into output inflation," said Aditi Nayar, chief economist at Icra.

Another set of data by a private survey on Friday also revealed that India's manufacturing sector activity eased to a ninemonth low in June.

"The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index declined from 54.6 in May to 53.9 in June," the survey said.