July GST collections rise 11%, crosses Rs 1.65 lakh crore

The Goods and Services Tax (GST) revenue collection for the month of July 2023 witnessed a significant milestone, crossing the Rs 1.6 lakh crore mark for the fifth time since inception of GST regime. The total gross GST revenue collected during July 2023 amounted to Rs 1,65,105 crore, marking 11 per cent growth when compared to the revenue collected during the same month last year.

The breakup of the GST revenue collected in July 2023 includes Rs 29,773 crore as Central GST (CGST), Rs 37,623 crore as State GST (SGST), Rs 85,930 crore as Integrated GST (IGST), and Rs 11,779 crore as Cess. IGST collection includes Rs 41,239 crore from import of goods, and the cess collection includes Rs 840 crore from the import of goods.

The revenue distribution between the Centre and the States was settled as Rs 39,785 crore to CGST and Rs 33,188 crore to SGST from IGST, resulting in a total of Rs 69,558 crore for CGST and Rs 70,811 crore for SGST after regular settlement in July 2023.

Domestic transactions soar

An encouraging trend is the growth in revenues from domestic transactions, which include import of services, showing a 15 per cent increase year-on-year. This substantial growth indicates a positive trajectory for the Indian economy, despite prevailing challenges.

In a state-wise analysis, several regions showed notable improvements in GST revenue collection during July 2023 as compared to July 2022. States like Jammu and Kashmir, Himachal Pradesh, Delhi, and Tamil Nadu registered remarkable growth rates of 27 per cent, 23 per cent, 25 per cent, and 19 per cent, respectively. Even the Centre's jurisdiction reported an impressive 29 per cent growth in GST revenue during the same period.

On the other hand, certain regions faced lower growth rates or even a decline in GST revenues. Manipur, for instance, experienced a slight decrease of 7 per cent in its GST revenue collection during July 2023. Meanwhile, Daman and Diu, and Lakshadweep showed marginal growth of 13 per cent and 45 per cent, respectively.

Experts believe that such steady progress in GST revenue will continue to have a positive impact on the country's fiscal health and economic development.