Home / Economy / GST collections up at 1.49 tn in July, 2nd highest ever

NEW DELHI : Central and state governments collected 1.49 trillion in Goods and Services Tax (GST) in July, the second-highest mop-up since the rollout of the indirect tax regime five years ago in July 2017.

The collections are also 28% above the July 2021 figure of 1.16 trillion and higher than that seen in the previous month of June at 1.45 trillion. GST collections had touched a record 1.68 trillion in April 2022.

A finance ministry statement said that tax revenue from the import of goods rose 48% from a year ago in July and the revenues from domestic transaction (including import of services) were 22% higher than the revenues from these sources during the same month last year.

With the July collections, it is five months in a row now that the monthly GST revenues have been more than 1.4 trillion, showing a steady increase every month. In fact, the collections reported the second highest increase in the previous month of June, with the numbers being breached in July.

“These consistent high collections indicate recovery from the pandemic hit and can also be attributed to inflation and tight check and balances implemented by the Government. Further, with rationalisations being implemented subsequent to the recent GST Council meet, these numbers may further go up in the coming months," Abhishek Jain, Partner Indirect Tax, KPMG in India, said.

Apart from monthly rise, the growth in GST revenue till July 2022 over the same period last year is 35% and displays a very high buoyancy. “This is a clear impact of various measures taken by the Council in the past to ensure better compliance. Better reporting coupled with economic recovery has been having positive impact on the GST revenues on a consistent basis," the finance ministry statement said.

As per official data, the gross GST revenue collected in July 2022 stood at 1,48,995 crore of which CGST is 25,751 crore, SGST is 32,807 crore, IGST is 79,518 crore (including 41,420 crore collected on import of goods) and cess is 10,920 crore (including 995 crore collected on import of goods).

The finance ministry said that the government has settled 32,365 crore to Central Goods and Services Tax or CGST and 26,774 crore to State GST from Integrated GST. The total revenue of Centre and the States in July 2022 after regular settlement is 58,116 crore for CGST and 59,581 crore for the SGST.

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