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
- 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.
- 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.
- 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.