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

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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