As a result of larger reimbursements, August’s net goods and services tax (GST) collection fell by 9.2% to Rs 1.5 trillion from Rs 1.65 trillion in July. Even in comparison to July’s 14.4% growth in net receipts, August’s increase dropped to 6.5% from the same month last year.
The total amount collected, or gross collection, before calculating refunds was Rs 1.75 trillion in August. Growth slowed to 10% YoY from 10.3% the month before. In July 2024, gross income was Rs 1.82 trillion. It was recorded as Rs 1.66 trillion in July 2023 and Rs 1.59 trillion in August 2023. Compared to Rs 8.29 trillion collected during the same period in 2023, the total GST collection thus far in the current fiscal year (FY25) has increased by 10.1% to Rs 9.13 trillion. The July-related goods and services transactions are included in the August statistics.
The strong economy is indicated by the continuous expansion in gross GST revenues, even though net GST revenue decreased as a result of higher refunds. The decline in imports and rise in exports show the trend towards self-sufficiency. August’s imports increased by 12.1% to Rs 49,976 crore. This was more than the 9.2% increase in domestic revenue to Rs 1.25 trillion.
August’s net receipts were impacted since the refund was given at the same time for both export and domestic sources, and it was larger for both. It appears that the GST receipts have leveled off at about Rs 1.75 trillion. Now that the celebrations have begun, there should be an even greater uptick in the coming months.
There were notable variations in August’s growth in GST collection between states that might be worth further investigation. The solid consumption in large states like Maharashtra, Karnataka, Uttar Pradesh, Madhya Pradesh, and Haryana, along with the efforts made by tax authorities to enhance compliance and combat evasion, was demonstrated by their capacity to post double- digit rise in collections.