GST collections rose 10 per cent to nearly Rs 1.75 lakh crore in August.

GST collections rose 10 per cent to nearly Rs 1.75 lakh crore in August.

Gross GST collections rose 10 per cent to nearly Rs 1.75 lakh crore in August, reflecting higher domestic consumption. According to government data released on Sunday, gross GST revenue from domestic transactions rose 9.2 per cent to nearly Rs 1.25 lakh crore. Revenue from imports of goods rose 12.1 per cent to Rs 49,976 crore. Gross Goods and Services Tax (GST) collections stood at Rs 1.82 lakh crore in July, as against Rs 1.59 lakh crore in August last year. Deloitte India partner MS Mani said a 10 per cent increase in collections on a year-on-month basis at the start of the festive season of the year shows that consumption is strong and will improve further in the coming festive months.

This will again boost confidence that the collection target for the year will be achieved. Mani said there are some differences in the growth of GST collections across major states, which may require deeper consideration. Refunds worth Rs 24,460 crore were issued during August, 2024, which is 38 per cent higher than the refunds issued in the year-ago period. After adjusting for refunds, net GST revenue grew 6.5 per cent to Rs 1.5 lakh crore during the month under review. EY Tax Partner Saurabh Agarwal said the continued growth in gross GST collections indicates a strong economy. "The government's commitment to reducing working capital costs for businesses facing an inverted duty structure is demonstrated by high domestic GST refunds.

By rationalising the rates, the government aims to address this issue over time," Agarwal said. Mani further said that the ability of large states like Maharashtra, Karnataka, UP, MP and Haryana to record double-digit growth in collections once again reflects strong consumption in these states as well as measures taken by tax authorities to improve compliance and crack down on evasion. However, single-digit growth in large states like Gujarat, Andhra Pradesh and Tamil Nadu will attract the attention of tax authorities in these states, Mani said. Abhishek Jain, head and partner at indirect tax at KPMG, said GST collections have now stabilised around Rs 1.75 lakh crore. - "With the onset of festivals, further surge is expected in the next few months," Jain said.