During the month, based on transactions in May, central GST collections are estimated to have increased 3.4% to Rs 32,067 crore, state GST went up 6.3% to Rs 40,715 crore, according to data available with sources.The two numbers (combined) show an 8% rise to Rs 73,134 crore, indicating a slower increase in integrated GST levied on imports and inter-state sales and cesses. Foreign trade has remained weak due to depressed prices for several commodities.
The IGST and compensation cess data was unavailable as the official numbers were not released by govt. During the first quarter, the kitty is estimated to have swollen by 10.2% to Rs 5,57,006 crore. Since December, monthly collections have increased by 10-12%, in line with the nominal growth rate.
“While the growth in collection in June seems to be on a lower side compared to previous month, overall GST collections have shown an encouraging trend over last few months. Industry hopes that the trend will enable the GST council to reinitiate the rate rationalisation exercise as indicated in the last council meeting,” said Partik Jain, partner at consulting firm PwC. Economists said one month’s data may not point to any direction.
“The June 2024, GST collection of Rs 1.74 lakh crore is a strong indicator of a booming domestic consumption sector. This marks an impressive four-month streak where collections have exceeded Rs 1.5 lakh crore, bringing the year-to-date total to a remarkable Rs 5.57 crore. This robust performance reflects a buoyant economy, with businesses demonstrating commendable self-compliance. Timely audits, scrutiny measures, and effective enforcement by the department have all contributed to this success. The significant surge in collections also raises expectations for the next wave of GST reforms. These reforms could potentially address working capital blockages, streamline tax rates, ease ITC restrictions and implement sector-specific solutions to tackle existing challenges,” said Saurabh Agarwal, tax partner at EY India.
Source Agencies
