India’s August GST Collection Surges to ₹1.59 Trillion: In August, India witnessed a notable surge in Goods and Services Tax (GST) collection, amounting to ₹1.59 trillion, signifying an 11% increase compared to the same period last year. This substantial development can be ascribed to improved compliance and anti-evasion measures put in place.
Daily Current Affairs Quiz: September 2023
Comparison with Previous Months
- August 2023’s collection marked a significant rise from the ₹1.43 trillion collected in August 2022.
- It is crucial to note, however, that GST collection has slowed compared to the previous month, which recorded 1.65 trillion in July.
Factors Behind the Moderation
- The moderation in collection is primarily attributed to subdued growth in integrated GST (IGST) and the cess on imports, which increased by only 3% in August.
- Importantly, both imports and IGST collections have experienced fluctuations in recent months.
Government’s Expectations
- For the fiscal year, the government has set an ambitious target of 1.6 trillion to 1.65 trillion in average monthly GST collection.
- Experts anticipate the growth momentum to continue, although certain inhibiting factors are not ruled out.
Distribution of Tax Collection
- Following the settlement of taxes for inter-state sales, the Centre collected ₹65,909 crore, while the states garnered ₹67,202 crore in August.
Year-on-Year Improvement
- In comparison to the same month in the previous year, August 2023’s GST revenues showed an impressive 11% increase.
- According to the finance ministry, revenue from imports of products increased by 3%, while revenue from domestic transactions (including imports of services) surged by 14% compared to the same period last year.
Strong Performance in Major States
- Several major states reported robust growth rates in GST collection.
- According to official figures, Maharashtra’s collection climbed by 23% to 23,282 crore, Karnataka’s collection increased by 16% to 11,116 crore, and Gujarat’s collection increased by 12% to 9,765 crore.
