GST receipts growth slows marginally to 10% in August

Gross revenue from domestic transactions grew 9.2% in August, better than the 8.9% growth in July. | Photo Credit: Getty Images/iStockphoto

Growth in India’s gross goods and services tax (GST) collections decelerated marginally to 10% in August from 10.3% in July, generating revenue of about Rs 1.75 lakh crore, but growth in net receipts slowed to 6.5% from 14.4% in the previous month.

Sequentially, gross revenue in August was 3.9% lower than in July, when it had reached its third-highest monthly figure of a little over ₹1.82 lakh crore. However, after adjusting for refunds to taxpayers, net revenue in August stood at ₹1,50,501 crore, reflecting a sharp decline of 9.2% compared to July.

The growth in gross GST revenue in July marks a sharp improvement from June, when the growth rate had hit a three-year low of 7.6%.

Gross revenue from domestic transactions rose 9.2% in August, better than the 8.9% growth in July, while receipts from imports rose 12.1%, slightly slower than the 14.2% growth of the previous month. After accounting for refunds, net domestic receipts grew only 4.9%, while revenue from merchandise imports rose 11.2%.

Increase in GST revenue in the first five months of FY 2024-25

In the first five months of FY 2024-25, total GST revenues have now grown by 10.1% to around ₹9.14 lakh crore, while net receipts have risen by 10.2% to over ₹8.06 lakh crore. Accounting for refunds, which are up over 10% from last year, net domestic revenues have grown by 12.3%, while tax receipts from goods imports have increased by 2.6%.

The Central Board of Indirect Taxes and Customs said the GST revenue figures for August are provisional and there may be slight variation from the actual numbers when finalised.

A major reason for the fall in net revenue in August over July is the sharp 50.2% rise in tax refunds made during the month, totalling ₹24,460 crore. This is a 38% increase from last August, and includes a 59.6% increase in refunds for domestic transactions.

In contrast, domestic refunds declined 34.1% year-on-year in July, and total refunds fell 19.4% to ₹16,283 crore. Sequentially, these refunds were 18.4% lower than June levels.