GST revenue up by 11% YoY in July; J&K, Himachal, Maharashtra, TN see spurt in collection
A continued momentum in economic activities and improved compliances are seen to have helped boost collections from the indirect tax levy.
- Aug 1, 2023,
- Updated Aug 1, 2023 3:14 PM IST
The mop up from the goods and services tax (GST) in July touched its second highest level this fiscal at Rs 1.65 lakh crore. A continued momentum in economic activities and improved compliances are seen to have helped boost collections from the indirect tax levy.
“The revenues for the month of July 2023 are 11 per cent higher than the GST revenues in the same month last year,” said a Finance Ministry statement on Tuesday. It is for the fifth time that the gross GST collection has crossed Rs 1.6 lakh crore-mark.
However, on a month-on-month basis, the growth in GST collections was just a 2.2 per cent growth from Rs 1.61 lakh crore in June 2023. The revenue from GST touched a record high of Rs 1.87 lakh crore in April 2023.
According to the official data, Central GST (CGST) collections amounted to Rs 29,773 crore in July while State GST (SGST) was Rs 37,623 crore. Integrated GST (IGST) was Rs 85,930 crore last month, including Rs 41,239 crore collected on import of goods and cess was Rs 11,779 crore, including Rs 840 crore collected on import of goods.
The government has settled Rs 39,785 crore to CGST and Rs 33,188 crore to SGST from IGST. The total revenue of Centre and the States in the month of July 2023 after regular settlement was Rs 69,558 crore for CGST and Rs 70,811 crore for the SGST.
While tax officials believe that the new normal for GST collections per month is Rs 1.5 lakh crore, experts said the collections may increase further going forward as the festive season will start in coming months.
Abhishek Jain, Partner & National Head - Indirect Tax, KPMG, said, “The continued growth in GST collections with Rs 1.6 lakh crore and above being the norm brings a substantial cheer. With approaching normal period of limitation for FY 17-18 and approaching festive season, this cheer is expected to only increase.”
According to the data, most States and Union Territories, including Himachal Pradesh and Chandigarh (23 per cent each), Jammu and Kashmir (27 per cent), Delhi (25 per cent), Tamil Nadu (19 per cent) and Maharashtra (18 per cent) growth in GST collections.
While it is still early in the financial year but it is expected that the target for collections from GST will be met. For fiscal 2023-24, the government has targeted raising Rs 9.56 lakh crore from GST, which is about an 11.9 per cent increase from the Revised Estimate of Rs 8.54 lakh crore last fiscal. Of this, CGST receipts are budgeted at Rs 8.11 lakh crore this fiscal as against Rs 7.24 lakh crore in the Revised Estimate for last fiscal.
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The mop up from the goods and services tax (GST) in July touched its second highest level this fiscal at Rs 1.65 lakh crore. A continued momentum in economic activities and improved compliances are seen to have helped boost collections from the indirect tax levy.
“The revenues for the month of July 2023 are 11 per cent higher than the GST revenues in the same month last year,” said a Finance Ministry statement on Tuesday. It is for the fifth time that the gross GST collection has crossed Rs 1.6 lakh crore-mark.
However, on a month-on-month basis, the growth in GST collections was just a 2.2 per cent growth from Rs 1.61 lakh crore in June 2023. The revenue from GST touched a record high of Rs 1.87 lakh crore in April 2023.
According to the official data, Central GST (CGST) collections amounted to Rs 29,773 crore in July while State GST (SGST) was Rs 37,623 crore. Integrated GST (IGST) was Rs 85,930 crore last month, including Rs 41,239 crore collected on import of goods and cess was Rs 11,779 crore, including Rs 840 crore collected on import of goods.
The government has settled Rs 39,785 crore to CGST and Rs 33,188 crore to SGST from IGST. The total revenue of Centre and the States in the month of July 2023 after regular settlement was Rs 69,558 crore for CGST and Rs 70,811 crore for the SGST.
While tax officials believe that the new normal for GST collections per month is Rs 1.5 lakh crore, experts said the collections may increase further going forward as the festive season will start in coming months.
Abhishek Jain, Partner & National Head - Indirect Tax, KPMG, said, “The continued growth in GST collections with Rs 1.6 lakh crore and above being the norm brings a substantial cheer. With approaching normal period of limitation for FY 17-18 and approaching festive season, this cheer is expected to only increase.”
According to the data, most States and Union Territories, including Himachal Pradesh and Chandigarh (23 per cent each), Jammu and Kashmir (27 per cent), Delhi (25 per cent), Tamil Nadu (19 per cent) and Maharashtra (18 per cent) growth in GST collections.
While it is still early in the financial year but it is expected that the target for collections from GST will be met. For fiscal 2023-24, the government has targeted raising Rs 9.56 lakh crore from GST, which is about an 11.9 per cent increase from the Revised Estimate of Rs 8.54 lakh crore last fiscal. Of this, CGST receipts are budgeted at Rs 8.11 lakh crore this fiscal as against Rs 7.24 lakh crore in the Revised Estimate for last fiscal.
Also Read: GST collection in July stands at over Rs 1.65 lakh crore; records 11% on-year growth
Also Read: Foxconn planning to make EVs in India? Here’s what we know so far