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India's Goods and Services Tax (GST) collections for August 2024 witnessed a robust 10% year-on-year increase, reaching Rs 1,74,962 crore, according to an official statement from the government. This growth was observed across all categories: Central GST (CGST), State GST (SGST), Integrated GST (IGST), and cess. The previous year, in August 2023, the gross GST revenue was Rs 1,59,069 crore. This positive trend continues, as the collections for July 2024 totalled Rs 182,075 crore. Looking at the broader picture for 2024, the total GST collection has been 10.1% higher at Rs 9.13 lakh crore compared to the Rs 8.29 lakh crore collected during the corresponding period in 2023. The record-breaking GST mop-up in April reached Rs 2.10 lakh crore.
Mahesh Jaising, Partner and Leader, Indirect Tax, Deloitte India, highlighted the significance of these figures: "The August 2024 GST collections reflect the resilience and robustness of India's tax framework. The consistent year-on-year growth of around 10 percent underscores the effectiveness of ongoing GST reforms and compliance measures. The significant rise in import revenue highlights the buoyancy in the external sector, while the strong domestic collections affirm the continued momentum in the economy." Domestic revenue experienced a 9.2% growth in August 2024, reaching approximately Rs 1.25 lakh crore. Gross GST revenues from imported goods saw a notable 12.1% increase to Rs 49,976 crore. During the month, refunds issued amounted to Rs 24,460 crore, reflecting a 38% year-on-year rise. Adjusting for refunds, the net GST revenue increase stood at 6.5% for the month, totalling Rs 1.5 lakh crore.
The upcoming GST Council meeting, scheduled for September 9th or later, will be a crucial platform for discussions on rationalizing tax rates. Finance Minister Nirmala Sitharaman will lead the panel in these deliberations. While the final decision on adjusting taxes and slabs will be made at a later stage, compensation cess on luxury and sin goods will also be a key topic for discussion. Jaising expressed his perspective on the upcoming meeting: "The upcoming GST Council meeting on September 9th will be crucial in further refining the tax structure, especially with potential decisions on ease of doing business. The government's continued efforts in maintaining this trajectory are commendable, ensuring sustained revenue streams that contribute to the nation's economic stability." The fitment committee, a group of tax officers, has been tasked with analyzing the implications of potential rate adjustments on specific items and presenting these findings to the GST Council. GST was implemented on July 1, 2017, with states receiving compensation for revenue losses incurred due to the GST rollout until June 2022.
Source: GST collections grow 10 per cent to Rs 1.75 lakh crore in August