GST receipts’ growth slows marginally to 10% in August

In August, gross revenues from domestic transactions were up 9.2%, improving from an 8.9% rise in July,
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The growth in India’s Gross Goods and Services Tax (GST) collections slowed down marginally to 10% in August from 10.3% in July, with revenues of nearly ₹1.75 lakh crore, but the rise in net receipts slumped to 6.5% from 14.4% in the previous month.

Sequentially, gross revenues were 3.9% lower in August vis-a-vis July, when they had hit their third-highest monthly tally a tad over ₹1.82 lakh crore. However, net revenues, after adjusting for refunds to taxpayers, were ₹1,50,501 crore in August, marking a sharper 9.2% drop from July’s kitty.

The uptick in July’s gross GST revenues had marked a sharp recovery over June, when growth had hit a three-year low of 7.6%.

In August, gross revenues from domestic transactions were up 9.2%, improving from an 8.9% rise in July, while receipts from imports rose 12.1%, slightly slower than the 14.2% growth in the previous month. After accounting for refunds, net domestic receipts grew just 4.9%, while revenues from goods imports expanded 11.2%.

GST revenues up in first five months of FY 2024-25

In the first five months of FY2024-25, overall GST revenues have now risen 10.1% to almost ₹9.14 lakh crore, while net receipts are 10.2% higher at over ₹8.06 lakh crore. After accounting for refunds, which are up over 10% from last year, net domestic revenues have grown 12.3%, while goods imports have yielded a 2.6% rise in tax receipts.

The Central Board of Indirect Taxes and Customs said August’s GST revenue figures are provisional and the actual numbers may “slightly vary” on finalisation.

A significant part of the decline in net revenues in August over July, may be attributed to a sharp 50.2% sequential spike in tax refunds effected during the month, adding up to ₹24,460 crore. This constitutes a 38% rise from last August, and includes a 59.6% surge in refunds for domestic transactions.

By contrast, domestic refunds had slipped 34.1% year-on-year in July, and overall refunds were 19.4% down to ₹16,283 crore. Sequentially, those refunds were 18.4% below June’s levels.