GST collection rises 28% to Rs 1.43 lakh crore in July

New Delhi: India’s tax collection from the sale of goods and services soared 28% to Rs. 1.43 lakh crore in July this year aided by rising demand, higher rates, and greater compliance. The GST (Goods and Service Tax) collection remained above the Rs 1.4-lakh-crore mark for the sixth straight month in August and the ensuing festival season will help continue the trend. Better reporting coupled with economic recovery has have a “positive impact on the GST revenues on a consistent basis”, the finance ministry said in a statement. The gross GST revenue collected in August 2022 is Rs. 1,43,612 crore of which CGST is Rs. 24,710 crore, SGST is Rs. 30,951 crore, IGST is Rs. 77,782 crore (including Rs. 42,067 crore collected on import of goods) and cess is Rs. 10,168 crore (including Rs. 1,018 crore collected on import of goods), the ministry said. The revenues for the month of August 2022 are 28 per cent higher than the GST revenues of Rs 1,12,020 crore collected in August 2021. “The growth in GST revenue till August 2022 over the same period last year is 33 per cent, continuing to display very high buoyancy. This is a clear impact of various measures taken by the Council in the past to ensure better compliance,” the Ministry said. The collection in August is, however, lower than Rs. 1.49 lakh crore collected in July. The mop up was at a record high of Rs. 1.67 lakh crore in April. “The consistent high collections indicate upward economic trajectory despite fluctuating COVID cases and to some extent attributable to inflation and better compliance being ensured by the government,” Abhishek Jain, Partner at KPMG, said. The collection increase is due to better compliance and the removal of various exemptions from July 2022, Parag Mehta, Partner, Indirect Tax,  N A Shah Associates said. “Further, with the festive season setting in, the collections for the next 2-3 months will also show an upward trajectory,” Mehta said. Deloitte India Partner MS Mani said the collections reflect the strength of the underlying economic factors. “With the onset of the festival season, which is typically a large consumption driver for all businesses, the GST collections in the coming months would also be expected to be robust,” Mani added. Nexdigm, Director Indirect Tax, Sanjay Chhabria said higher collections are signs of recovery of trade & economy post the COVID-19 pandemic and we could continue to witness such higher tax buoyancy during the upcoming festivities in the country. Aditi Nayar, ICRA Chief Economist, said looking ahead, the YoY (Year on Year) growth in GST collections is likely to remain well above 20 per cent in September 2022, before tempering down to 12-15 per cent in December quarter, on a normalising base, trending close to the nominal GDP expansion. “We continue to foresee a considerable upside in the CGST collections relative to the FY2023 Budget Estimates, more than offsetting the expected loss in excise collections,” Nayar said. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.