GST collection rises 6.5% to Rs1.86 lakh crore in August

Gross revenue from the Goods and Services Tax (GST) rose 6.5 per cent year-on-year to Rs1.86 lakh crore in August, according to official data released by the Union Finance Ministry. However, sequentially, collections showed a decline compared to July, when gross GST revenue had touched Rs1.96 lakh crore.On a month-on-month basis, GST collections fell 4.8 per cent. “This dip would be an important input for the GST Council in assessing potential revenue loss as it considers GST rate rationalisation proposals later this week,” stated Karthik Mani, Partner – Indirect Tax at BDO India. The GST Council is scheduled to meet on September 3–4 in New Delhi,according to information.
Looking at the August figures, domestic GST collection grew by 9.6 per cent to Rs1.37 lakh crore, while tax from imports dipped 1.2 per cent to Rs49,354 crore. After accounting for refunds, the net GST revenue stood at Rs1.67 lakh crore, marking a 10.7 per cent rise compared to the same month last year. Refunds fell sharply by 20 per cent year-on-year to Rs19,359 crore.
“The significant dip in export refunds is a clear signal of the impact that global tariffs are having on our export sector,” noted Saurabh Agarwal, Tax Partner at EY India. “The government’s efforts to build stronger trade relations with other developing economies will likely help in addressing these external challenges to keep Indian exporters competitive on the global stage,” he added.According to estimates,revenue collection from central GST stood at Rs31,474 crore, while states collected Rs39,736 crore as State GST. Taxes on inter-state sales and imports apportioned among the Centre and consuming states amounted to Rs83,964 crore. GST compensation cess collections reached Rs11,792 crore in August.

(Business Correspondent)