Goods and services tax (GST) collections in July jumped 28 per cent year-on-year (y-o-y) to Rs 1,48,995 crore, on better reporting and economic recovery. This is the second-highest GST revenue collection ever. The mop-up in June had stood at Rs 1,44,616 crore, according to an official statement.
The GST collections in July 2022 are the second-highest ever, after the April 2022 mop-up of Rs 1,67,540 crore. It is the sixth time that the monthly GST collections have crossed the Rs 1.40-lakh-crore mark since the inception of GST and the fifth month at a stretch since March 2022.
“The gross GST revenue collected in July 2022 is Rs 1,48,995 crore, of which CGST is Rs 25,751 crore, SGST is Rs 32,807 crore, IGST is Rs 79,518 crore (including Rs 41,420 crore collected on import of goods) and cess is Rs 10,920 crore (including Rs 995 crore collected on import of goods). This is second highest revenue since the introduction of GST,” the finance ministry said in a statement on Monday.
The government has settled Rs 32,365 crore to CGST and Rs 26,774 crore to SGST from IGST. The total revenue of the Centre and the states in July 2022 after regular settlement is Rs 58,116 crore for CGST and Rs 59,581 crore for the SGST.
“The revenues for the month of July 2022 are 28 per cent higher than the GST revenues in the same month last year of Rs 1,16,393 crore. During the month, revenues from import of goods was 48 per cent higher and the revenues from domestic transaction (including import of services) are 22 per cent higher than the revenues from these sources during the same month last year,” it added.
The ministry also said the growth in GST revenue in the current financial year till July 2022 is 35 per cent higher over the same period last year and displays a high buoyancy. This is a clear impact of various measures taken by the GST Council in the past to ensure better compliance. “Better reporting coupled with economic recovery has been having a positive impact on the GST revenues on a consistent basis,” it added.
During June 2022, 7.45 crore e-way bills were generated, which was marginally higher than 7.36 crore in May 2022, the statement said.
Sanjeev Sanyal, principal economic advisor to the Government of India, said in a tweet on Friday, “With Rs 1.49 lakh crores of GST collected in July, the momentum in the economy is clearly intact.”
Abhishek Jain, partner (indirect tax) at KPMG in India, said, “Continuing the positive trend, this month’s GST collections are 28 per cent higher than the collections as compared to same month of last financial year, leading to an impressive 35 per cent year-on-year growth.”
He added that these consistent high collections indicate recovery from the pandemic-induced slowdown 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.”