Nothing Low

Stuff that matters

Goods and services tax (GST) collections in June jumped 56 per cent year-on-year to touch Rs 1,44,616 crore, driven by economic recovery and anti-evasion drives such as action against fake billers, according to an official statement released on Friday. The mop-up in June 2021 had stood at Rs 92,800 crore.

The GST collections in June 2022 are the second-highest ever, after the April 2022 mop-up of Rs 1,67,540 crore, the finance ministry in a statement said adding that it is the fifth time that the monthly GST collections have crossed the Rs 1.40-lakh-crore mark since the inception of GST and the fourth month at a stretch since March 2022.

Finance Minister Nirmala Sitharaman on Friday said Rs 1.4 lakh crore is the “rough bottom line” now for GST collections.

“The gross GST revenue collected in June 2022 is Rs 1,44,616 crore, of which CGST is Rs 25,306 crore, SGST is Rs 32,406 crore, IGST is Rs 75,887 crore (including Rs 40,102 crore collected on import of goods) and cess is Rs 11,018 crore (including Rs 1,197 crore collected on import of goods),” the finance ministry stated.

The government has settled Rs 29,588 crore to CGST (central GST) and Rs 24,235 crore to SGST (state GST) from IGST (integrated GST). In addition, the Centre has also settled Rs 27,000 crore of IGST on ad-hoc basis in the ratio of 50:50 between the Centre and states/ Union territories (UTs) in June 2022. The total revenue of the Centre and the states in June 2022 after regular and adhoc settlement stood at Rs 68,394 crore for CGST and Rs 70,141 crore for the SGST.

“The revenues for June 2022 are 56 per cent higher than the GST revenues in the same month last year of Rs 92,800 crore. During the month, revenues from import of goods was 55 per cent higher and the revenues from domestic transaction (including import of services) are 56 per cent higher than the revenues from these sources during the same month last year,” the statement said.

The total number of e-way bills generated in May 2022 was 7.3 crore, which is two per cent less than 7.4 crore e-way bills generated in April 2022, it said.

Abhishek Jain, partner (indirect tax) at KPMG in India, said, “These consistent high collections indicate recovery from the pandemic and can also be attributed to inflation and tight checks and balances implemented by the government. With this being said, the collections should give some comfort to both the Centre and states on the revenue front.”

M S Mani, partner at Deloitte India, said, “The high GST collections, which leads to a new monthly normal of Rs 1.4 lakh crore during Q1 of FY23, come on the heels of several macroeconomic parameters being on the upswing.”

He added that the increase in state-wise collections compared to the same month last year is impressive as many large states have shown an increase in excess of 40 per cent. Since this comes in the backdrop of the guaranteed Compensation to states coming to an end, it would assuage many states who were worried about their revenue mobilisation ability in the post cess period.