GST collection in August expected to cross ₹1.42 lakh crore, says Finance Ministry

Finance Ministry cites robust car sales, GST collections to emphasise growth momentum will sustain in Q2

India’s Goods and Services Tax (GST) collections in August are estimated to be over ₹1.42 lakh crore, 27% higher than the same month of 2021, marking the sixth month in a row that the indirect tax has yielded over ₹1.4 lakh crore.

“The sustained growth in GST collections indicates that the growth momentum of the Indian economy has sustained even beyond Q1 of 2022-23,” the Finance Ministry said in a statement on the GDP estimates for the first quarter released by the National Statistical Office on Wednesday, that also included its growth outlook.

While the final GST revenue figures are scheduled to be released on Thursday, the ministry stressed that the growth in GST revenues was supported by a “robust growth in economic activity along with various measures undertaken to prevent anti-evasion activities and encourage better compliance”.

Also Read | Fiscal deficit touches 20.5% of annual target in April-July: official data

E-way bills generated under the GST system also grew 15% to touch 7.56 crore in August, indicating robust domestic economic activity, the ministry said.

In July, GST revenues stood at ₹1,48,995 crore, the second highest monthly collections since the launch of the tax regime in 2017 and the highest in three months. July’s GST kitty was 28% higher year-on-year and was boosted by a 48% surge in revenues from import of goods, while revenues from domestic transactions, including import of services were 22% higher.

While India’s retail inflation had eased to a five-month low of 6.71% in July, the Finance Ministry highlighted several high-frequency indicators to emphasise that India’s growth-inflation matrix was on solid ground.