Goods and services tax (GST) collections rose 7.5% in July to Rs 1.95 lakh crore from a year earlier, despite prevailing geopolitical tension and its spillover on consumer sentiment, official data released on Friday revealed. In June, the mop-up was Rs 1.84 lakh crore. Experts said that the overall trend shows a stable consumption pattern as gross collections from April to July stood at Rs 8.18 lakh crore, marking a growth of 10.7% from the year earlier.
“Looking at the year-to-date figures, the robust GST collections confirm that the Indian economy is on a consistent growth trajectory, which is a testament to its resilience,” said Saurabh Agarwal, tax partner, EY India.
“While we may see some seasonal moderation in August, the overall trend is very positive and a clear indicator of India's robust economic growth.” Gross domestic revenue grew 6.7% to Rs 1.43 lakh crore, while tax from imports rose 9.5% to Rs 52,712 crore. Manufacturing activity in July remained resilient despite global challenges, with output rising to a 16-month high of 59.1, supporting the overall economic momentum.
Total refunds for the month stood at Rs 27,147 crore, up 66.8% against the same month last year. “GST refunds picking up, not just for exports but also for domestic supplies, reflects maturity of the GST regime,” said Abhishek Jain, indirect tax head and partner, KPMG.
“Higher refunds on domestic supplies could be from excess tax payments, inverted duty structures, and other adjustments. The increased refunds should aid cash flows for businesses.” Collections, net of refunds, stood at Rs 1.69 lakh crore, marking 1.7% year-on-year growth. States continued to show a mixed trend.
“The growth in state revenues amongst large producing and consuming states has been very low, ranging from 2% (Delhi), 3% (Gujarat), 4% (Rajasthan), 6% (Maharashtra), 7% (Karnataka) to 8% (Tamil Nadu),” said MS Mani, tax partner, Deloitte. Among the larger states, West Bengal (12%), Andhra Pradesh (14%) and Madhya Pradesh (18%), posted double digit growth in collections.
“Looking at the year-to-date figures, the robust GST collections confirm that the Indian economy is on a consistent growth trajectory, which is a testament to its resilience,” said Saurabh Agarwal, tax partner, EY India.
“While we may see some seasonal moderation in August, the overall trend is very positive and a clear indicator of India's robust economic growth.” Gross domestic revenue grew 6.7% to Rs 1.43 lakh crore, while tax from imports rose 9.5% to Rs 52,712 crore. Manufacturing activity in July remained resilient despite global challenges, with output rising to a 16-month high of 59.1, supporting the overall economic momentum.
Total refunds for the month stood at Rs 27,147 crore, up 66.8% against the same month last year. “GST refunds picking up, not just for exports but also for domestic supplies, reflects maturity of the GST regime,” said Abhishek Jain, indirect tax head and partner, KPMG.
“Higher refunds on domestic supplies could be from excess tax payments, inverted duty structures, and other adjustments. The increased refunds should aid cash flows for businesses.” Collections, net of refunds, stood at Rs 1.69 lakh crore, marking 1.7% year-on-year growth. States continued to show a mixed trend.
“The growth in state revenues amongst large producing and consuming states has been very low, ranging from 2% (Delhi), 3% (Gujarat), 4% (Rajasthan), 6% (Maharashtra), 7% (Karnataka) to 8% (Tamil Nadu),” said MS Mani, tax partner, Deloitte. Among the larger states, West Bengal (12%), Andhra Pradesh (14%) and Madhya Pradesh (18%), posted double digit growth in collections.
