India’s Goods and Services Tax (GST) collections saw a significant rebound in July, reaching ₹1.82 lakh crore. This marks the third-highest monthly level ever, with revenue growth recovering to 10.3% from a three-year low of 7.6% in June.
Revenue from domestic transactions grew by 8.9%, slightly down from June’s 9.4%. However, taxes collected on imports saw a substantial jump, growing by 14.2% compared to just 2.4% in the previous month. Overall, the GST collections in July were 4.75% higher than June’s figure of ₹1.73 lakh crore.
After accounting for taxpayer refunds, net GST collections rose by 14.4% to ₹1.65 lakh crore. This included a 17.3% increase in net import revenue and a 13.5% rise in domestic transactions. Net GST revenues in July were 7.75% higher than June’s figure of nearly ₹1.54 lakh crore.
Tax experts suggest that the sharp increase in net collections compared to gross revenue may be due to a slowdown in refunds. In June, refunds grew by 19.3% year-on-year, but in July, domestic refunds dropped by 34.1% and export-related refunds rose only slightly by 1.4%. Total refunds in July were 19.4% lower than the previous year.
July’s revenue figures are provisional and may vary slightly upon finalisation. The highest ever monthly GST collection was recorded in April this year at over ₹2.1 lakh crore, followed by ₹1.87 lakh crore in April 2023, driven by financial year-end compliances.
While the total revenue from domestic transactions grew by 8.9%, some states like Andhra Pradesh and Himachal Pradesh saw a 7% decline. In contrast, states like Telangana, Punjab, and West Bengal experienced milder growth rates.
In the first four months of the fiscal year 2024-25, gross GST revenues have increased by 10.2% to ₹7.39 lakh crore, with domestic revenues up by 11.8% and import taxes growing by 5%. Net collections have grown by 11%, totaling ₹6.56 lakh crore. Import revenues increased by 0.2%, while domestic transactions saw a 14% growth.
Deloitte India’s partner, MS Mani, pointed out the varying growth rates among states and the apparent slowdown in refunds, indicating the need for a sectoral analysis of these trends.
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