GST Collection For June Is Second-Highest Since Rollout
GST revenue for June, collected in July, stood at Rs 1,48,995 crore.
The government’s goods and service tax collection was the second-highest since rollout, aided by better filings, coupled with economic recovery.
GST revenue for June, collected in July, stood at Rs 1,48,995 crore, according to a statement by the finance ministry. That is a 28% increase year-on-year. The collections remained above Rs 1.4 lakh crore for the fifth straight month.
During the month, revenue from import of goods was 48% higher and the revenue from domestic transaction (including import of services) were 22% higher over the year earlier. In June, 7.45 crore e-way bills were generated compared with 7.36 crore in May.
“Growth in GST revenue till July 2022 over the same period last year is 35% and displays a very high buoyancy. This is a clear impact of various measures taken by the council in the past to ensure better compliance,” the statement said.
Break-Up Of GST Collection
Central GST: Rs 25,751 crore.
State GST: Rs 32,807 crore.
Integrated GST: Rs 79,518 crore, including Rs 41,420 crore collected on imports.
Cess: Rs 10,920 crore, including Rs 995 crore from imports.
Aditi Nayar, chief economist at ICRA, foresees that since the collection surpassed its monthly estimate of Rs 1.45 lakh crore, the CGST collections will register an upside of Rs 1.15 lakh crore relative to the FY23 budgeted expectations.
Among states, Karnataka reported the highest year-on-year GST revenue growth at 45% to Rs 9,795 crore. That was on a base of Rs 6,737 crore.
Tamil Nadu (34%), Kerala (29%), West Bengal (28%), Haryana (27%), and Uttrakhand (26%) were among other states that posted growth over the year earlier.
Maharashtra collected the highest amount of GST at Rs 22,129 crore.
With the new monthly average baseline at Rs 1.4 lakh crore, MS Mani, partner at Deloitte India, told BQ Prime that this would provide some comfort to states which have just come out of the guaranteed compensation period and are concerned about their revenue mobilisation abilities.
“The new normal of Rs 1.4 lakh crore seen during the past few months accompanied by the fact that all major states have shown growth in excess of 15% over the last year, indicates that economic activities have stabilised and the many of the leakages have been plugged,” he said.
The efforts toward better compliance is expected to continue. Mani expects that businesses will undergo tighter scrutiny at audits and assessments as the GST authorities at both the central and state level work on improving collections.