TABLE IS BEING MAILED
The Finance Ministry on Saturday reported a collection of over ₹1.61 lakh crore through Goods & Services Tax (GST) in June. This is 12 per cent higher than last June and around 3 per cent higher than May.
Reasons for higher collection could be higher demand for goods and good performance of services sector. A Ministry statement said, “During the month, the revenues from domestic transactions (including import of services) are 18 per cent higher than the revenues from these sources during the same month last year.”
It may be noted that this collection is related with goods consumed and services availed in May.
The statement added that gross GST collection crosses the ₹1.6 lakh crore mark for the fourth time, ₹1.4 lakh crore for 16 months in a row and ₹1.5 lakh for 7th time since GST’s inception. Also, the average monthly gross GST collection for Q1 of FY24 is ₹1.69 lakh crore as compared to ₹1.10 lakh crore and ₹1.51 lakh crore of corresponding periods of FY22 and FY23 respectively
The gross GST revenue collected in June comprise ₹31,013 crore of CGST, ₹38,292 crore of SGST, ₹80,292 crore (including ₹ 39,035 crore collected on import of goods) of IGST and ₹11,900 crore (including ₹ 1,028 crore collected on import of goods) of cess.
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The government has settled ₹36,224 crore to CGST and ₹30,269 crore to SGST from IGST. In June, the total revenue of the Centre and States after regular settlement is ₹67,237 crore for CGST and ₹68,561 crore for SGST.
Room for comfort
M S Mani, Senior partner with Deloitte said these collections, coming on the sixth anniversary of GST, would give policymakers room for comfort as the collections during Q1 FY24 are 12 per cent higher than Q1 FY23. They indicate that the extensive focus of the authorities on compliance and ongoing audits has streamlined the approach of all businesses towards GST.
“The fact that state-wise collection growth is in the band of 10-20 per cent for many of the large states would also indicate that uniformity of growth and centralised approach to building tax compliant behaviour,” he said.
According to Vivek Jalan, Partner with Tax Connect Advisory says, this month’s GST figures reveal a reversal in growth of revenues. In earlier months it was seen that although GST from import of goods and services was growing at the budgeted pace of around 12 per cent, however, the GST Collections from domestic transactions was lagging behind with a grown of less than 12 per cent - which was well below the budget expectations.. “This time the domestic growth is 18%, vis-a-vis an overall growth of 12 per cent It is an encouraging trend for the economy as GST revenue growth reflects the state of economy somewhat,” he said.