The Goods and Services Tax (GST) collections rose by 15.4 per cent year-on-year to Rs 2.11 lakh crore in July, primarily due to robust import-related revenues even as domestic collections grew at a slower pace.
This is the third time in the current financial year that the collection surpassed the Rs 2 lakh crore mark, and the growth is at a 14-month high at 15.4 per cent.
As per the data released by the Ministry of Finance on Friday, the gross domestic GST revenue has gone up by 10.1 per cent to Rs 1.45 lakh crore, while GST collected on imports surged by 28.8 per cent to Rs 66,511 crore.
“The defining feature is the 28.8 per cent surge in import GST, consistent with total imports expanding 26.85 per cent in June and amplified by rupee depreciation, which increased the taxable rupee value of imported energy, commodities and industrial inputs,” said Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat.
After accounting for refunds, net GST collections stood at Rs 1.81 lakh crore in July, up 15.8 per cent from a year ago. Refunds rose 13.1 per cent to Rs 29,968 crore, indicating continued support for exporters and businesses claiming input tax credits.
“Total refunds increased by 13.1 per cent during the month, while export refunds processed through ICEGATE recorded a robust 22.7 per cent growth. The ability to sustain strong revenue growth alongside faster refund disbursements reflects an increasingly efficient GST administration that is balancing fiscal objectives with the liquidity needs of businesses, particularly exporters,” said Mahesh Jaising, Partner & Indirect Tax Leader, Deloitte India.
Among the States, Haryana accounted for the strongest growth in State-wise domestic GST collections with the revenue collection from the State up by 28 per cent, followed by Gujarat and Karnataka at 26 per cent and 23 per cent respectively.
On the other hand, the collection fell the highest in States like Chhattisgarh and Jharkhand in July, where it went down by 23 per cent and 20 per cent respectively. The collection fell by 8 per cent in Delhi.
For the April-July period, gross GST collections grew by 10.1 per cent year-on-year to Rs 8.43 lakh crore, while net collections are up by 9.2 per cent to Rs 7.21 lakh crore.
During this period, domestic gross collections grew by 4.5 per cent. Notably, there has been a sharp 26.9 per cent jump in import-related GST receipts.