July Sees GST Collections Surge by 15.4% Exceeding Rs 2.11 Lakh Crore
India’s Goods and Services Tax (GST) collections reached over Rs 2.11 lakh crore in July, marking a 15.4% increase year-on-year. This growth was fueled by robust revenues from both domestic transactions and imports, as reported by the government on Friday. July’s collections follow a strong performance in June, where GST revenues also exceeded the Rs 2 lakh crore threshold.
Breakdown of Collections
The July figures included Rs 39,835 crore from Central GST (CGST), Rs 47,881 crore from State GST (SGST), and over Rs 1.23 lakh crore from Integrated GST (IGST). This indicates significant tax inflows from inter-state transactions and imports. The government maintained a steady pace of refunds, with total GST refunds rising 13.1% year-on-year to Rs 29,968 crore in July. After accounting for these refunds, net GST revenue stood at over Rs 1.81 lakh crore.
Abhishek Jain, Indirect Tax Head & Partner at KPMG, noted that July’s GST collections reflect strong momentum, primarily driven by imports. He suggested that further analysis is needed to determine whether the growth is due to finished goods or raw materials and how much is influenced by a weaker rupee. Domestic collections also showed steady growth, and Jain mentioned the potential for a GST 3.0, particularly regarding refunds on input services for companies facing an inverted duty structure.
Previous Month’s Performance
The July collections build on June’s strong performance, where gross GST collections rose 13.9% year-on-year to Rs 1.94 lakh crore. In June, net GST revenue increased by 11.2% to Rs 1.62 lakh crore. The growth in June was largely attributed to a significant rise in import-related tax collections, which surged 34.6% year-on-year to Rs 60,038 crore. Domestic GST collections also saw a 6.5% increase to Rs 1.34 lakh crore, while refunds rose 29.1% to Rs 32,436 crore, enhancing liquidity for businesses.
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