Gross Goods and Services Tax (GST) collections rose to Rs 1.45 lakh crore, the second-highest monthly total and a gain of 56 percent from a year earlier.
Monthly GST collections, which had totalled Rs 1.41 lakh crore in May, have stayed above the 1.40 lakh crore level since March.
“We are now… showing that the GST revenues remain above 1.40 lakh crores,” Finance Minister Nirmala Sitharaman said at an event on five years of GST. "Rs 1.40 lakh crore seems to be the rough bottom line. We're not going below that, we're only collecting more than that."
For June, the gross GST collection was the second-highest collection after April.
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“The collection in June 2022 is not only the second-highest but also has broken the trend of being low collection month as observed in the past,” the government said in a statement. “Coupled with economic recovery, anti-evasion activities, especially action against fake billers have been contributing to the enhanced GST. The gross cess collection in this month is the highest since the introduction of GST.”
For June, the CGST revenue stood at Rs 25,306 crore, SGST at Rs 32,406 crore, IGST Rs 75,887 crore and the GST compensation cess at Rs 11,018 crore.
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The government settled Rs 29,588 crore to CGST and Rs 24,235 crore to SGST from IGST. In addition, the Centre also settled Rs 27,000 crore of IGST on an ad-hoc basis in the ratio of 50:50 between the Centre and States.
The total revenue of the Centre and the States in June after regular and ad hoc settlement stood at Rs 68,394 crore for CGST and Rs 70,141 crore for SGST.
The sharp on year growth of 56% in headline GST revenues benefits from the economic recovery, and has also been boosted by the low base and the transmission of elevated commodity prices into output inflation, Aditi Nayar, chief economist at ICRA said.
Still, the collections are impressive, tracking the monthly average that ICRA foresees for FY23,
This implies a substantive upside of around Rs 1.2 lakh crore to the government relative to its budget estimates for CGST of Rs 6.6 lakh crore, she added.
“If GST collections grow at the envisioned pace of around 17% in FY2023, then many states may be able to withstand the end of the GST compensation period. However, some states with a relatively higher dependence on GST compensation within their revenue sources, may find FY2023 to be a particularly challenging year," Nayar said.
GST compensation to states ended June 30 this year. Although a dozen states have asked the compensation be extended, there is no decision on the issue yet. The GST Council will meet next in first week of August.
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