GST collection in August increased by 10% compared to last year to Rs 1.74 lakh crore

According to data released on Sunday, the gross Goods and Services Tax (GST) collection in August stood at Rs 1.74 lakh crore, which is 10 percent more than the same period last year.

The total collection in August 2023 will be Rs 1.59 lakh crore.

CGST, SGST, IGST and cess all increased year-on-year in August, according to official data made available today.

The total GST collection so far in 2024 has increased by 10.1 per cent to Rs 9.13 lakh crore, while Rs 8.29 lakh crore was collected in the same period of 2023.

Total GST collection in April reached a record high of Rs 2.10 lakh crore.

Goods and Services Tax (GST) collection stood at Rs 1.82 lakh crore in July. The collection in May and June was Rs 1.73 lakh crore and Rs 1.74 lakh crore respectively.

The total gross GST collection during the financial year 2023-24 was recorded at Rs 20.18 lakh crore, which is 11.7 per cent higher than the previous financial year.

The average monthly collection for the financial year ending March 2024 stood at Rs 1.68 lakh crore, higher than the previous year’s average of Rs 1.5 lakh crore.

The recent growth in GST collections reflects a positive trajectory for India’s economy, underscored by strong domestic consumption and buoyant import activity. These figures bode well for the country’s fiscal health and economic reform efforts, indicating resilience amid global uncertainties.

The Goods and Services Tax was implemented in the country from July 1, 2017 and the states were assured compensation for five years for any revenue loss caused due to the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017.

Hair oil, toothpaste, soap, detergent and washing powder, wheat, rice, curd, lassi, buttermilk, wrist watches, TVs up to 32 inches, refrigerators, washing machines, mobile phones, are among the major items on which GST rates have been drastically cut or kept at zero for some, benefiting the people of this country.

A study by the Finance Ministry has shown that consumers have saved at least four percent of their household monthly expenditure after GST. Thus, consumers now spend less on daily consumption items like cereals, edible oil, sugar, sweets and snacks.

The GST regime has removed the inefficiencies and complexities of the old tax system. Over the years, GST has, among other things, simplified compliance and reduced the cascading effect of tax. Before July 1, 2017, the indirect tax system was highly fragmented. The Centre and the states used to levy taxes on different goods and services.

The GST Council, a federal body with the Union Finance Minister as its Chairperson and all State Finance Ministers as its members, has played its role in this forum.