GST revenues in August hit three-month low at ₹1.59 lakh crore

GST revenue in August 2023 hit a three-month low of ₹1.59 lakh cr, 10.76% higher than July. Domestic transactions & services imports rose 14%, goods imports 3%. August marked first time in 3 months that revenues from goods imports recorded an uptick. States showed 10-40% growth.

India’s gross GST revenues grew 10.76% in August to hit a three-month low of ₹1,59,069 crore, with revenues from domestic transactions and services imports rising 14% and goods imports yielding 3% more taxes.

The revenue growth was just marginally lower than the 10.8% uptick in July, which was the slowest in two years. However, revenues were 3.65% below the ₹1.65 lakh crore collected in July.

The first five months of 2023-24 have still reported 11.3% higher average GST revenues of nearly ₹1.66 lakh crore, compared to the same period last year, thanks to the record ₹1.87 lakh crore collected in April.

August also marked the first time in three months that revenues from goods imports recorded an uptick. Central GST (CGST) collections in the month stood at ₹28,328 crore, State GST collections at ₹35,794 crore and Integrated GST or IGST at ₹83,251 crore, the Finance Ministry said.

Over half of the IGST collections or ₹43,550 crore was collected on import of goods, while Compensation Cess yielded ₹11,695 crore, including ₹1,016 crore on goods imports.

“The government has settled ₹37,581 crore to CGST and ₹31,408 crore to State GST from IGST. The total revenue of Centre and the States in the month of August, 2023 after regular settlement is ₹65,909 crore for CGST and ₹67,202 crore for the SGST,” the ministry said in a statement.

“The headline GST number is marginally lower than our forecast, dampened by imports. However, the overall collections so far this year remain robust,” said ICRA chief economist Aditi Nayar.