GST Collections for the month of July 2024 grew by 10.3% on a YoY basis. Last year, in July, the tax collection stood at ₹ 1.74 lakh crore, this year, in the previous month, the collection was ₹ 1.82 lakh crore as per data released by the Union Finance Ministry.
GST collection in FY25
From the beginning of FY25, until July 2024, the overall growth in the gst collections is around 10.2% and the total collection of these four months stood at ₹ 7.39 lakh crore. In July, the domestic collection of GST went up by 8.9% while the same from imports increased by a whopping 14.2%. The refunds issued over this period have reduced by 19% compared to the corresponding period last year. The total GST refunds issued in this period (April –July 2024) stood at ₹ 16283 crore out of which ₹ 11566 crore were for Integrated Goods and Service Taxes (IGST). The next domestic revenue jumped by 14.4% from ₹ 1.45 lakh crore in the previous year during the same period, while this year it stood at ₹ 1.66 lakh crore.
Factors Fuelling GST Collections
The gst collection growth has been a result of multiple factors working together. For instance,
- The growth and upliftment of the manufacturing sector mainly boosted the gst collection in the country.
- An above-average monsoon has positively impacted the gst revenues in July
- Compared to the other states in the economy, the northeastern states added the most to the collection. Andaman and Nicobar Islands, Ladakh also added significantly. This in turn indicates that these developing states are growing and economic activities are increasing.
- The increase in the imports added significantly, as GST collected from imports had been higher in July compared to GST collected from domestic supplies. This is interesting as the GST collected in July is for the month of June 2024 supplies when the market remains sluggish as people mostly go into the saving mode to cherish the upcoming festivals.
- The gst collections from Maharashtra, Karnataka, and Gujrat indicate a significantly growing trend, and the collections grew between 11% and 13%. While on the other hand, states like Andhra Pradesh, Tamil Nadu, and UP even witnessed a slowdown in the collection of gst revenues. During the month of July.
- Since the beginning of 2024, the YTD gst collection has risen by 11% which remained in line with the estimates projected in the Union Budget.
- The growth in the collections and the recording of one of the highest gst collections in India in July indicates the market stability and depth.
What’s for the future in FY25?
For the remaining of the FY25, the GST collections are expected to rise further in the upcoming months as the demand will increase due to the upcoming festival season. However, the monsoon may hinder growth in the month of August, as the overall market momentum slows down during the monsoon.
Source: https://www.cnbctv18.com/
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