GST collection in July soared 28 per cent on-year to Rs 1.49 lakh crore, becoming the second highest revenue collection since the introduction of the GST regime. During the month, revenues from import of goods were up 48 per cent, and the revenues from domestic transactions (including import of services) were up 22 per cent from revenues from these sources during the same month last year. “For five months in a row now, the monthly GST revenues have been more than Rs 1.4 lakh crore, showing a steady increase every month,” the finance ministry said in a statement.
Of the total GST collections, Central GST was Rs 25,751 crore, while State GST was Rs 32,807 crore. Integrated GST was Rs 79,518 crore and cess was Rs 10,920 crore. The collections hit a record high of Rs 1.68 lakh crore in April, 2022. The Finance Ministry said that till July 2022, GST revenue has jumped 35 per cent, displaying a very high buoyancy.
“This is a clear impact of various measures taken by the Council in the past to ensure better compliance,” it added. Moreover, better reporting coupled with economic recovery has been having a positive impact on the GST revenues on a consistent basis, the ministry added. It may be noted that a total 7.45 crore e-way bills were generated in June 2022, which was marginally higher than 7.36 crore in May 2022. The Finance Ministry in a statement noted that the government has settled Rs 32,365 crore to CGST and Rs 26,774 crore to SGST from IGST. The total revenue of Centre and the States in the month of July 2022 after regular settlement stood at Rs 58,116 crore for CGST and Rs 59,581 crore for the SGST.
With the sustained economic recovery post-pandemic, most of the core sectors of the economy have shown signs of growth. This is reflected in improving economic indices along with GST collection, Manish Mishra, Partner, JSA, said. Mishra also added that with the law settling down after five years of implementation and the Government taking significant measures in the past few months to clarify the ambiguities in the law and curbing the menace of fake invoicing and fraudulent credit availment also seem to have contributed to the rising GST collections. “With the recent increase in the rate of GST for critical sectors of mass consumption and continuing economic resurgence of India, it is expected that this upward trend in GST collections is likely to continue,” Manish Mishra added.