MillenniumPost
Big Story

GST collections rise 10% to Rs 1.75 lakh crore in August

GST collections rise 10% to   Rs 1.75 lakh crore in August
X

New Delhi: 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.

Sequentially, gross revenues in August fell by 3.9 per cent compared to July's figures. Net receipts, which are adjusted for refunds, saw a sharper drop of 9.2 per cent, amounting to Rs 1,50,501 crore in August. This marks the second weakest growth rate this financial year, down from 14.4 per cent in July.

The uptick in July’s gross GST revenues had signalled a strong rebound from June, which had recorded a three-year low growth rate of 7.6 per cent. Net receipts growth was also modest at 6.3 per cent in June. The slower growth in August underscores ongoing volatility in revenue trends.

Domestic transactions contributed positively with a 9.2 per cent increase in gross revenues, improving from July’s 8.9 per cent rise. However, growth from imports slowed to 12.1 per cent, down from 14.2 per cent in the previous month. Net domestic receipts experienced a modest 4.9 per cent increase, while revenues from goods imports grew by 11.2 per cent.

A significant factor behind the decline in net revenues for August was a sharp 50.2 per cent sequential increase in tax refunds, totalling Rs 24,460 crore. This surge in refunds, which is 38 per cent higher than the amount refunded in August last year, includes a striking 59.6 per cent rise in refunds for domestic transactions. In contrast, refunds in July had decreased significantly, with domestic refunds falling by 34.1 per cent year-on-year and overall refunds dropping 19.4 per cent.

The Central Board of Indirect Taxes and Customs has noted that the August GST revenue figures are provisional and subject to revision. It's important to remember that these figures reflect economic activity from July.

Revenue trends varied significantly across states. Six states—Meghalaya, Nagaland, Mizoram, Chhattisgarh, Arunachal Pradesh, and Andhra Pradesh—experienced revenue contractions compared to August of the previous year. Meghalaya and Nagaland saw the most substantial declines at 18 per cent each, followed by Mizoram (-13 per cent), Chhattisgarh and Arunachal Pradesh (-10 per cent each), and Andhra Pradesh (-5 per cent).

On the other hand, the Union Territory of Jammu and Kashmir, as well as Kerala and Tripura, saw revenue growth in line with the national average of around 9 per cent. Several states recorded more modest growth, with revenues increasing by just 4 per cent in Telangana and Goa, 5 per cent in Rajasthan and Jharkhand, 6 per cent in Gujarat and West Bengal, and 7 per cent in Tamil Nadu and Punjab.

Manipur reported the highest growth rate at 38 per cent, albeit from a lower base of Rs 40 crore the previous year, when the state was experiencing unrest. Other states with significant growth included Delhi (22 per cent), Assam (18 per cent), Himachal Pradesh (14 per cent), Maharashtra (13 per cent), and Haryana and Madhya Pradesh (12 per cent each). Karnataka, Odisha, and Uttar Pradesh also outperformed the overall GST revenue growth, with 11 per cent increases.

For the first five months of the 2024-25 fiscal year, overall GST revenues have risen by 10.1 per cent to nearly Rs 9.14 lakh crore, while net receipts are up 10.2 per cent to over Rs 8.06 lakh crore. Adjusting for refunds, which have also increased by 10 per cent from the previous year, net domestic revenues have grown by 12.3 per cent, and revenues from goods imports have seen a 2.6 per cent rise.

Next Story
Share it