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India’s August GST Collection Surges to ₹1.59 Trillion

In August, India witnessed a notable surge in Goods and Services Tax (GST) collection, amounting to ₹1.59 trillion, signifying an 11% increase compared to the same period last year. This impressive growth can be attributed to enhanced compliance and anti-evasion measures put in place.

Comparison with Previous Months

India's GST collection increases 11% to Rs 1.59 trn on better compliance

  • August 2023’s collection marked a significant rise from the ₹1.43 trillion collected in August 2022.
  • However, it’s important to note that GST collection moderated compared to the previous month, which recorded ₹1.65 trillion in July.

Factors Behind the Moderation

  • The moderation in collection is primarily attributed to subdued growth in integrated GST (IGST) and the cess on imports, which increased by only 3% in August.
  • Importantly, both imports and IGST collections have experienced fluctuations in recent months.

Government’s Expectations

  • The government has set an ambitious target for the financial year, aiming for an average monthly GST collection between ₹1.6 trillion and ₹1.65 trillion.
  • Experts anticipate the growth momentum to continue, although certain inhibiting factors are not ruled out.

Distribution of Tax Collection

  • Following the settlement of taxes for inter-state sales, the Centre collected ₹65,909 crore, while the states garnered ₹67,202 crore in August.

Year-on-Year Improvement

  • In comparison to the same month in the previous year, August 2023’s GST revenues showed an impressive 11% increase.
  • Revenue from the import of goods increased by 3%, and revenue from domestic transactions (including import of services) grew by 14% compared to the same period last year, according to the finance ministry.

Strong Performance in Major States

  • Several major states reported robust growth rates in GST collection.
  • Maharashtra recorded a remarkable 23% increase at ₹23,282 crore, Karnataka’s collection surged by 16% to ₹11,116 crore, and Gujarat’s collection increased by 12% to ₹9,765 crore, as per official data.

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