In July 2023, the Ministry of Finance reported that the gross collection from the Goods and Services Tax (GST) amounted to $2 billion, surpassing $1.95 billion for the fifth time since its inception. This figure is 11 percent higher compared to the GST revenue of the same month last year. The Ministry elaborated that out of the total collection, CGST contributed $364 million, SGST amounted to $461 million, IGST reached $1.05 billion (including $502 million from goods import), and the cess accounted for $144 million (including $10 million from goods import).
Additionally, data indicated a 15 percent increase in revenues from domestic transactions, encompassing services import, in July on a year-on-year basis. The Ministry informed that $485 million was settled to CGST and $405 million to SGST from IGST. After regular settlement, the cumulative revenue for the Center and the States in July 2023 stood at $850 million for CGST and $865 million for SGST.
The GST revenue for June 2023 touched $1.97 billion, exhibiting a 12 percent YoY increase. Specifically, CGST was recorded at $380 million, SGST at $496 million, IGST at $980 million (including $480 million from goods import), and cess at $146 million (including $12 million from goods import).
While April 2023 recorded a record high of $2.28 billion in GST revenue, May witnessed a collection of $1.91 billion. Commenting on the recent figures, Parag Mehta, Partner of NA Shah Associates, highlighted the continuous rise in GST collections as an indication for considering rate rationalization for various goods and services, benefiting consumers. Mehta also credited the robust GSTN network for early detection of tax evaders and emphasized the GST Council’s clarifications for enhanced clarity, compliance, and higher collections.
