GST receipts surpass Rs1.4 trillion for the sixth month in a row

2 Sep 2022 , 07:57 AM

For the sixth consecutive month, GST (Goods and Services Tax) revenues exceeded Rs1.4 trillion. Year over year, they grew 28% to Rs1.43 trillion due to improved compliance, a rebound in spending, and higher inflation. In August 2021, the GST collected Rs1.12 trillion.

However, from the Rs1.49 trillion received in July, indirect tax income saw a little month-over-month decline. Despite the introduction of the GST on pre-packaged food goods in July, there was a decrease in collection compared to the previous month.

“GST revenue has increased by 33% through August compared to the same period last year, continuing to show extremely significant buoyancy. This is an obvious result of the numerous steps the GST Council has taken in the past to achieve improved compliance. Better reporting and economic recovery have consistently had a favorable effect on GST receipts, according to the Ministry of Finance.

The national GST was worth Rs24,710 crore and the state GST was worth Rs30,951 crore of the total Rs1.43 trillion collected. A total of Rs77,782 crore in integrated GST was collected during the month, including Rs42,067 crore on the import of commodities.

The Union government paid Rs29,524 crore to CGST and Rs25,119 crore to SGST from the IGST collected. With this, the Center’s and the States’ combined revenue reached Rs.4,234 crore and Rs56,070 crore, respectively.

During the month, a cess was collected to the tune of almost Rs 10,168 crore. Additionally, around 76 million e-way bills were produced in July, which is a little increase over the 74 million produced in June and a 19% increase over the 64 million produced in July 2021.

The significant year-over-year gain, according to Aditi Nayar, chief economist at ICRA, indicated the resurgence in spending, greater compliance, and rising inflation even though GST receipts were slightly down from the previous month.

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