GST collection in July jumps by 28% to ₹1.49 lakh crore

July’s Goods and Services Tax (GST) collection is 28% higher than the same month last year, and is the second-highest monthly collections since the launch of the GST regime

The Goods and Services Tax (GST) yielded ₹1,48,995 crore in revenues during the month of July, the second-highest monthly collections since the launch of the GST regime and the highest in three months.

July’s GST kitty is 28% higher than the same month last year, driven by a 48% surge in revenues from import of goods, while revenues from domestic transactions, including import of services are 22% higher than a year ago.

The Finance Ministry said better reporting coupled with economic recovery have had a consistently positive impact on GST revenues, which are now 35% higher during the April to July period than a year ago. These revenues display a ‘very high buoyancy’ and are ‘a clear impact’ of various measures taken by the GST Council to ensure better compliance, it noted.

“For five months in a row now, the monthly GST revenues have been more than ₹ 1.4 lakh core, showing a steady increase every month,” the ministry said in a statement.

The GST revenues in July include central GST collections of ₹25,751 crore, State GST collections of ₹32,807 crore, and Integrated GST or IGST inflows of ₹79,518 crore, which includes ₹41,420 crore collected on import of goods. GST Compensation Cess collections were ₹10,920 crore, factoring in ₹995 crore collected on goods imports.

About a dozen States recorded higher revenue growth than the 22% overall rise in revenues from domestic transactions, including Karnataka (45%), Tamil Nadu (34%), Kerala (29%), West Bengal (28%), Haryana (27%), Telangana (26%), and Andhra Pradesh (25%).

By contrast, Gujarat (20%), Uttar Pradesh (18%), Maharashtra and Rajasthan (17%), Madhya Pradesh (12%) and Chhatisgarh (11%), were among the States with slower revenue growth than the national average. Revenues grew just 1% in Odisha and fell by ₹1 crore in Jammu and Kashmir. Tripura and Bihar reported a contraction in revenues by 3% and 1%, respectively, compared to July 2021.