GST receipts above ₹1.43,000,000 in August

NEW DELHI : Central and state governments collected more than 1.43 trillion in Goods and Services Tax (GST) revenue in August, a jump of 28% from a year ago. In August 2021, the GST sweep was 1.12 trillion.

The collection of GST revenues remained $1.4 trillion for six consecutive months, according to an official statement from the Ministry of Finance.

Among the major states, Punjab, Haryana, Delhi, Gujarat and Maharashtra recorded double-digit growth in tax collection showing a robust consumption trend. Revenue collected in August represents sales that occurred in July.

In July, 76 million e-way invoices (electronic authorizations needed to ship goods within and between states) were generated. This is slightly higher than the 74 million raised in June.

After the settlements, the Center collected 54.2 billion central GST while states collected 56 billion in state GST in August.

During the month, receipts from the import of goods increased by 57% and receipts from domestic transactions, including the import of services, increased by 19% compared to receipts from these sources during the month. same month last year.

“For six consecutive months, monthly GST revenues have exceeded $1.4 trillion. GST revenue growth through August 2022 compared to the same period last year is 33%, continuing to show very high momentum,” the official statement said. Fiscal dynamism or the rate at which tax revenue increases relative to the rate of economic growth indicates efficiency in revenue collection.

“This is a clear impact of the various measures taken by the GST Board in the past to ensure better compliance. Better reporting associated with the economic recovery has had a positive impact on GST revenues consistently,” the ministry said.

Central and state authorities have taken a host of measures, including stricter reporting requirements and data analytics to control tax evasion and abuse of tax credits. This has helped increase the number of people filing tax returns as well as the revenue collected. The improvement in tax revenue is a big relief for state governments that will not receive GST compensation from the central government from July 2022 after the five-year transition period in the new tax regime.

According to Saurabh Agarwal, tax partner at EY, as GST revenue remains above 1.4 trillion for six consecutive months, the drop in tax collections of almost 7% compared to collections in July indicates a drop in demand. goods such as automobiles, cigarettes and soft drinks.

Abhishek Jain, Partner, Indirect Tax at KPMG in India, said consistent and high GST collections indicated an upward economic trajectory despite fluctuating Covid cases and better government compliance.

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