August GST Collections Rise 10.8% YoY to Rs 1.59 Lakh Crore but Dip 3.7% from July’s Figures
- ByStartupStory | September 3, 2023
The Ministry of Finance has reported a 10.8 percent year-on-year increase in Goods and Services Tax (GST) collections for August, reaching Rs 1.59 lakh crore. However, this figure is 3.7 percent lower than the Rs 1.65 lakh crore collected in July. It marks the sixth consecutive month that GST collections have surpassed the Rs 1.5-lakh-crore mark.
According to the 2023-24 Budget, the government aims for a 12 percent increase in GST collections for the current fiscal year.
In August, the breakdown of GST collections was as follows: Central GST amounted to Rs 28,328 crore, State GST was Rs 35,794 crore, Integrated GST reached Rs 83,251 crore, and compensation cess was Rs 11,695 crore.
Additionally, the government settled Rs 37,581 crore to Central GST and Rs 31,408 crore to State GST from Integrated GST in August. Consequently, the total revenue for the month, post-settlement, was Rs 65,909 crore for the Centre and Rs 67,202 crore for State GST.
“During the month, revenue from import of goods was 3 percent higher and the revenues from domestic transactions (including import of services) are 14 percent higher than the revenues from these sources during the same month last year,” the finance ministry said in a statement.
“These GST collections, coming in the backdrop of the good GDP growth in the first quarter heralds the onset of the festive season where consumption increases occur,” noted MS Mani, partner at Deloitte India.
“All the key manufacturing and consuming states have shown an increase ranging from 10 percent to 23 percent indicating that the overall increase in domestic consumption is fairly widespread across states,” Mani added.
The latest GST data brings the average monthly collection for 2023-24 to Rs 1.66 lakh crore. Over the years, monthly GST collections have seen an upward trend, with the collections averaging under Rs 1 lakh crore per month in its first year (2017-18) and steadily increasing thereafter, particularly in the aftermath of the pandemic-hit fiscal year 2020-21, when collections averaged Rs 1.51 lakh crore in 2022-23.
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