Gross GST collection crosses Rs 1.6 lakh cr mark; J&K surprises all!

India's Goods and Services Tax (GST) revenue collection for the month of July 2023 touched a remarkable Rs 1,65,105 crore, signalling a significant economic rebound. This figure represents an impressive 11% growth compared to the GST revenue collected in the same month last year. The latest data was released by the Ministry of Finance, and it reflects the country's ongoing efforts to bolster economic recovery and strengthen the tax system.

Based on the state-wise GST Revenue Collection data, Jammu & Kashmir exhibited an impressive 27% growth from Rs 431 crore in July 2022 to Rs 549 crore in July 2023. 

According to the data, there was decline of 7% in GST Revenue Collection of Manipur falling from Rs 45 crore in 2022 to Rs 42 crore in 2023.

Impressive Milestone: Gross GST Collection Surpasses Rs 1.6 Lakh Crore

The gross GST collection comprises Central Goods and Services Tax (CGST) of Rs 29,773 crore, State Goods and Services Tax (SGST) of Rs 37,623 crore, Integrated Goods and Services Tax (IGST) of Rs 85,930 crore (including Rs 41,239 crore collected on import of goods), and a cess of Rs 11,779 crore (including Rs 840 crore collected on import of goods).

Robust Growth: 11% Year-on-Year Increase

In the spirit of cooperative federalism, the government has settled Rs 39,785 crore to CGST and Rs 33,188 crore to SGST from IGST. After this regular settlement, the total revenue accrued to the Centre and the States in July 2023 stands at Rs 69,558 crore for CGST and Rs 70,811 crore for SGST.

“The revenues for the month of July 2023 are 11% higher than the GST revenues in the same month last year. During the month, the revenues from domestic transactions (including import of services) are 15% higher than the revenues from these sources during the same month last year. It is for the fifth time; the gross GST collection has crossed Rs. 1.60 lakh crore mark,” the Ministry of Finance said in a release.  

July 2023: A Landmark Month for GST Revenue

Remarkably, July 2023 marked the fifth time since the inception of GST that the gross GST collection surpassed the Rs 1.6 lakh crore mark, reflecting the resilience and growth potential of India's economy.

State-Wise Performance: Key Contributors to the Record Collection

The data also highlighted the state-wise growth of GST revenues during July 2023 compared to the same month in the previous year. Several states and Union Territories showed substantial growth, with Jammu and Kashmir recording a 27% increase, Himachal Pradesh 23%, Delhi 25%, Uttar Pradesh 24%, Maharashtra 18%, Tamil Nadu 19%, and Karnataka 17%, among others.

Domestic Transactions Thrive: 15% YoY Revenue Growth

Moreover, revenues from domestic transactions, which include the import of services, witnessed an impressive 15% year-on-year growth during July 2023. This indicates positive economic activity within the country, with businesses resuming operations and consumers regaining confidence in spending.

Government's Initiatives Fuel Economic Rebound

The Government's efforts to promote economic activities, attract investments, and enhance compliance have contributed to the consistent growth in GST revenue collection. Additionally, the focus on technological advancements and digitization has streamlined tax administration and made it more efficient.

Building a Strong Foundation for Economic Recovery

The remarkable milestone of India's GST revenue collection surpassing Rs 1.6 lakh crore in July 2023, signals significant economic rebound. The record GST collection for July 2023 sets the stage for further economic revival in the coming months.

Furthermore, the thriving domestic transactions and technological advancements fuel hope for a strong foundation of economic recovery in the near future.