New Delhi, Sep 1: The goods and services tax (GST) collections for August 2024 hit Rs 1.75 lakh crore, reflecting a 10% increase from Rs 1.59 lakh crore collected in August 2023. The growth continues a positive trend with a 10.1% rise in collections for the first five months of the fiscal year, totaling Rs 9.14 lakh crore.
Domestic transactions contributed significantly, with gross GST revenues from these transactions growing by 9.2% to about Rs 1.25 lakh crore. Revenues from imports also saw a rise of 12.1%, reaching Rs 49,976 crore.
Revenue Insights and Future Outlook
Net domestic revenues, after adjusting for refunds, climbed 4.9% to Rs 1.11 lakh crore. IGST revenues were up by 11.2%. Net GST revenue until August stood at Rs 8.07 lakh crore, marking a 10.2% increase over the previous year.
Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings, noted that while August 2024 collections were slightly lower than July 2024’s Rs 1.65 lakh crore, the overall GST revenue trend remains strong. He attributed this to robust tax collection systems, tax slab rationalization, and steady GDP growth.
Analysts suggest that high growth rates are challenging to sustain given the rising base. They emphasize considering the base effect for a more accurate assessment of GST collection trends in India. The GST Council is expected to discuss GST on life insurance in its upcoming meeting on September 9.
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