New Delhi: The gross GST revenue for August increased by 10 pc to around Rs 1.75 lakh crore, showing a rise in domestic spending. According to the government data published on Sunday, the gross GST revenues from domestic transactions increased by 9.2 per cent to approximately Rs 1.25 lakh crore. Income from the purchase of goods increased by 12.1 percent to Rs 49,976 crore.
In July, the collection of Goods and Services Tax (GST) was Rs 1.82 lakh crore, compared to Rs 1.59 lakh crore in August of the previous year. M S Mani, a Partner at Deloitte India, stated that a 10 per cent rise in collections from the previous month at the beginning of the festive season suggests strong consumption levels that are expected to continue improving in the upcoming festival months. "This would instill a fresh sense of assurance that the annual collection goals would be met." Mani mentioned that a more thorough analysis may be necessary to understand the varying growth rates of GST collection in major states.
In August 2024, refunds totaling Rs 24,460 crore were issued, marking a 38 pc increase compared to the refunds issued in the same period of the previous year. Following adjustments for refunds, the net GST revenue saw a 6.5 percent increase to Rs 1.5 lakh crore in the month being analyzed. EY Tax Partner Saurabh Agarwal noted that the steady increase in gross GST collections reflects a strong economy.
The government's dedication to lowering working capital expenses for companies dealing with an inverted duty system is shown through increased domestic GST reimbursements. Agarwal stated that the government's goal is to tackle this issue gradually by rationalizing rates. Mani also mentioned that the strong growth in tax collections in states such as Maharashtra, Karnataka, UP, MP, and Haryana reflects the solid consumer demand in these states along with efforts from tax authorities to enhance compliance and detect evasion
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