Gross and net GST collections rose by 15.4 per cent and 15.8 per cent, respectively, in July, led by robust revenue from imports, even as domestic collection also recorded healthy growth.
Gross GST collections stood at ₹2.11 lakh crore in July, compared with ₹1.83 lakh crore a year ago, while net collections, after adjusting for refunds, rose to ₹1.81 lakh crore from ₹1.56 lakh crore, data released by the government showed.
July GST collections reflect economic activity and transactions that took place in June.
Manoj Mishra, partner and tax controversy management leader at Grant Thornton Bharat, said the defining feature of the numbers is the 28.8 per cent surge in import GST (gross)-consistent with total imports expanding 26.85 per cent in June and amplified by rupee depreciation, which increased the taxable rupee value of imported energy, commodities and industrial inputs.
Observing that continuing US-Iran hostilities and disruption across critical West Asian energy and shipping corridors have further elevated oil, freight and landed costs, Mishra argued that GST numbers do not solely reflect an import-price story.
Mahesh Jaising, partner and indirect tax leader, Deloitte India pointed towards acceleration in net domestic GST collections to 10.5 per cent year-on-year from 2.6 per cent last month, indicating that the economy is beginning to fully absorb the benefits of the GST rate rationalisation exercise, with stronger consumption translating into higher domestic revenues.
Strong gains across Maharashtra, Gujarat, Karnataka, Haryana, Telangana and Uttar Pradesh confirmed broad-based momentum across India’s largest manufacturing, services and consumption hubs, experts said.
Bengal’s GST collection rose 2 per cent year-on-year to ₹5,564 crore in July, while registering a 9.5 per cent increase over the previous month.
Jaising also noted taxpayer facilitation drive leading to total refunds increasing by 13.1 per cent in July, while export refunds processed through ICEGATE recording 22.7 per cent growth.