GST collections rise nearly 8% YoY to Rs 1.74 lakh crore in June: Sources

India’s goods and services tax (GST) collections rose 7.7 percent to Rs 1.74 lakh crore in June as compared to Rs 1.73 lakh crore in May, sources told Moneycontrol on July 1.

The numbers were a tad higher than the previous month but lower than the GST mop-up in April, when it had peaked at Rs 2.1 lakh crore.

The collections totalled Rs 5.57 lakh crore in the first quarter of the year, averaging Rs 1.86 lakh crore per month.

GST collections averaged Rs 1.68 lakh crore in FY24.

Data shows that IGST worth Rs 39,586 crore was allocated to the Centre in June, with Rs 33,548 crore going to the states.

Data shows that the pace of growth of GST fell below double digits for the first time since the pandemic.

On Monday, the tax regime completed seven years. Experts indicate that GST revenues have significantly increased tax buoyancy.

A recent RBI study noted that state GST has helped reduce the vertical fiscal imbalance between the centre and states. The share of GST relative to GDP likely increased to 3 percent in FY24 compared with 2.6 percent in FY20.

In the Centre’s kitty, GST’s share of GDP rose to 3.3 percent in FY24, from 3 percent in FY20.