India’s GST collection Rs 1.75 lakh crore in August; up by 10%

India’s gross Goods and Services Tax (GST) collections in the month of August 2024 was nearly Rs 1.75 lakh crore, registering a growth of 10 per cent, according to government data. Gross GST revenue in August owing to domestic transactions surged 9.2 per cent to reach around Rs 1.25 lakh crore, while gross GST revenue from imports in the same month amounted to Rs 49,976 crore at a 12.1-per cent growth rate.

The data marked an increase in GST revenues year on year — the figure was Rs 1.59 lakh crore in August 2023. Numbers have, however, fallen since July this year, when the revenue amount was Rs 1.82 lakh crore.

Refunds worth Rs 24,460 crore were issued in August 2024, marking a 38-per cent increase year on year. After adjustment of refunds, net increase in GST revenue was Rs 1.5 lakh crore, at a rate of 6.5 per cent.

The Squirrels earlier reported how Finance Minister Nirmala Sitharaman declared last month that a “short discussion on rate rationalisation” of GST could happen at the 54th GST Council meeting on September 9, and a process to restructure slabs of the tax could be initiated then.

Bihar deputy chief minister Samrat Choudhary leads a reconstituted Group of Ministers (GoM) who are scheduled to make a presentation before the 54th GST Council on the current status of the all-inclusive indirect tax. An official decision on changes in GST rates would, however, take time. It would happen only after Choudhary and the GoM have readied their final suggestions.

There are four existing GST slabs right now, of 5, 12, 18 and 28 per cent. The GoM has been considering the idea of bringing down the number of slabs to three, for which they would consider if goods that are similar should have the same rate of GST.