NEW DELHI : Central and state governments collected over ₹1.43 trillion in Goods and Services Tax (GST) revenue in August, showing a 28% jump from a year ago. In August 2021, the GST mop-up was ₹1.12 trillion.
NEW DELHI : Central and state governments collected over ₹1.43 trillion in Goods and Services Tax (GST) revenue in August, showing a 28% jump from a year ago. In August 2021, the GST mop-up was ₹1.12 trillion.
GST revenue collection has remained over the ₹1.4 trillion mark for six months in a row, as per an official statement from the finance ministry.
Among major states, Punjab, Haryana, Delhi, Gujarat and Maharashtra reported double digit growth in the tax collection showing robust consumption trend. August revenue collections represent sales that took place in July.
In July, 76 million e-way bills --electronic permits needed for goods shipment within and across states --were generated. This is marginally higher than 74 million raised in June.
After settlements, Centre collected ₹54.2 billion in central GST while states collected ₹56 billion as state GST in August.
During the month, revenue from import of goods was 57% higher and revenue from domestic transactions including import of services was 19% higher compared to receipts from these sources in the same month last year.
"For six months in a row now, monthly GST revenues have been more than the ₹1.4 trillion mark. The growth in GST revenue till August 2022 over the same period last year is 33%, continuing to display very high buoyancy," said the official statement. Tax buoyancy or the pace at which tax revenue grows compared to the economic growth rate indicates the efficiency in revenue collection.
"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 positive impact on GST revenues on a consistent basis," the ministry said.
Central and state authorities have been taking a host of steps including tighter reporting requirements and data analytics to check tax evasion and abuse of tax credits. This has helped in increasing the number of people filing tax returns as well as the revenue collected. Improvement in revenue receipts is a big relief for state governments which will not be receiving GST compensation from central government from July 2022 after the five-year transition period in the new tax regime.
According to Saurabh Agarwal, Tax Partner at EY, while GST revenue receipts remain above 1.4 trillion for six consecutive months, the decline in cess collections by nearly 7% compared to July collections indicated decreased demand for goods such as automobile, cigarettes and aerated beverages.
Abhishek Jain, Partner, Indirect Tax at KPMG in India said that the consistent high GST collections indicated an upward economic trajectory despite fluctuating Covid cases and better compliance being ensured by the government.