GST collections in August 2023 jumped 11 per cent year-on-year to Rs 1.59 lakh crore, according to the official data released on Friday. Earlier in the day, Revenue Secretary Sanjay Malhotra told PTI that the growth in GST revenue is on the back of increased compliance and less evasion.
The GST collection was Rs 1,43,612 crore in August 2022.
“The gross GST revenue collected in the month of August, 2023 is Rs 1,59,069 crore of which CGST is Rs 28,328 crore, SGST is Rs 35,794 crore, IGST is Rs 83,251 crore (including Rs 43,550 crore collected on import of goods) and cess is Rs 11,695 crore (including Rs 1,016 crore collected on import of goods)," the finance ministry said in a statement.
The government has settled Rs 37,581 crore to CGST and Rs 31,408 crore to SGST from IGST. The total revenue of the Centre and the states in August 2023 after regular settlement is Rs 65,909 crore for CGST and Rs 67,202 crore for the SGST.
“The revenues for the month of August 2023 are 11 per cent higher than the GST revenues in the same month last year. During the month, revenue from import of goods was 3 per cent higher and the revenues from domestic transactions (including import of services) are 14 per cent higher than the revenues from these sources during the same month last year," the ministry said.
Revenue Secretary Sanjay Malhotra also said GDP growth was 7.8 per cent in June quarter and nominally it has grown 8 per cent. “GST revenues during June quarter grew by more than 11 per cent. This translates into a tax:GDP ratio of more than 1.3," Malhotra said.
Malhotra said GST collections have grown by more than nominal GDP and this is despite no increase in tax rates. This is because of better compliance and improved tax collection efficiency. Tax evasion and avoidance is low.
On the GST numbers, Pratik Jain, partner at Price Waterhouse & Co LLP, said, “GST collections are now regularly crossing 1.6 lac crore mark, which is higher than what was estimated for FY24. Double digit growth over previous year’s corresponding collection is encouraging and with festive season on the anvil, it’s likely to increase further. Initiatives such as Mera Bill, Mera Adhikar (launched today) which nudges the common citizens to create a more compliant ecosystem should also help the Government in plugging the tax leakages."
Abhishek Jain, partner and national head (indirect taxes) at KPMG, said, “The stabilized growth in GST collections brings beaming relief for the economy. With the approaching festive season, these collections are expected to only better in the coming months."
(The story has been updated with the official GST data)
