ECONOMY

GST Collection Soars 28% YoY, 2nd Highest Since Introduction

GST collection in July rose 28% on year to Rs 1.49 lakh crore, marking the second highest revenue collection since the introduction of the GST regime. During July, collections from import of goods were up 48%, and domestic transactions were up 22% from the same figure last year.


According to Finance Ministry, the monthly GST revenues have been more than Rs 1.4 lakh crore for five months. Data shows a steady growth every month. Of the total GST collections, Central GST, State GST and Integrated GST constituted Rs 25,751 crore, Rs 32,807 crore and Rs 79,518 crore, respectively, while cess was Rs 10,920 crore.


The revenue collections hit a record high of Rs 1.68 lakh crore in April 2022. Till July 2022, GST revenue collection has jumped 35%, which displays a very high buoyancy.


Finance Ministry believes this development impacts various measures taken by the GST Council in the past to ensure better compliance. Moreover, better reporting accompanied by economic recovery consistently positively impacted the GST revenues.


Notably, a total of 7.45 crore e-way bills were generated in June 2022, marginally higher than 7.36 crore in May 2022. The government has settled Rs 32,365 crore to CGST and Rs 26,774 crore to SGST from IGST. The total revenue of the Centre and the States in July 2022 after the regular settlement was Rs 58,116 and Rs 59,581 crore for CGST and SGST, respectively.


As the economy slowly and steadily recovered from a pandemic-induced slowdown, most core sectors have indicated signs of growth. Media agencies reported that with the law settling down after five years of its implementation and the government’s effort in dealing with fake invoicing and fraudulent credit availment and taking various measures for clarifying the ambiguities in the law seem to have contributed to the rising GST collections.

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