Record High Monthly GST Collections Indicate Strong Domestic Economy

Winning Bizness Desk

Mumbai. In July 2024, the government reported collecting ₹1.82 lakh crore from Goods and Services Tax (GST), reflecting a 10.3% year-on-year increase. This figure represents the third highest monthly collection on record and the second highest for the fiscal year 2024-25.

Breakdown of Collections

* Domestic Transactions - ₹1.34 lakh crore, marking an 8.9% year-on-year growth.

* Imports - ₹48,039 crore, a 14.2% increase over the previous year.

The government also issued refunds totaling ₹16,283 crore in July, resulting in a net GST revenue of ₹1,65,793 crore, which is 14.4% higher compared to July 2023. Experts view the record-high GST collections as a strong indicator of a robust domestic economy.

June GST Data Omitted

While the government did not release GST collection data for June, media reports citing official sources indicated that collections reached ₹1.74 lakh crore, approximately 8% higher than June of the previous year. In June 2023, the GST collection stood at ₹1.61 lakh crore. Comparatively, May 2024 saw a GST collection of ₹1.73 lakh crore, indicating stability in the collections for May and June.

Background on GST Implementation

GST was implemented nationwide on July 1, 2017, consolidating 17 central and state taxes and 13 cesses into a single tax system. On the seventh anniversary of GST, the Finance Ministry highlighted the achievements of the past seven years. GST replaced various indirect taxes such as VAT, service tax, purchase tax, and excise duty. The GST system includes four tax slabs: 5%, 12%, 18%, and 28%.