GST collections rise 10.8% YoY to Rs 1.65 lakh crore in July

The Centre expects its GST collections to rise by 12 percent in 2023-24.

The government's Goods and Services Tax (GST) collections climbed 10.8 percent on-year in July to Rs 1.65 lakh crore, the Ministry of Finance said on August 1.

At Rs 1.65 lakh crore, the July GST collections is the third-highest of all time and is 2.2 percent higher that what was collected in June - the month which held the previous record for posting the third-highest monthly mop-up.

This is the fifth month in a row that the monthly GST collection has come in above the Rs 1.5-lakh-crore mark.

As per the 2023-24 Budget, the Centre expects its GST collections to rise by 12 percent in the current financial year.

Of the total, Central GST was Rs 29,773 crore, State GST was Rs 37,623 crore, Integrated GST was Rs 85,930 crore, and compensation cess was Rs 11,779 crore.

In July, the government settled Rs 39,785 crore to Central GST and Rs 33,188 crore to State GST from Integrated GST. As a result, the total revenue for the month post settlement was Rs 69,558 crore for the Centre and Rs 70,811 crore for State GST.

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"During the month, the revenues from domestic transactions (including import of services) are 15 percent higher than the revenues from these sources during the same month last year. It is for the fifth time the gross GST collection has crossed Rs 1.60 lakh crore mark," the finance ministry said.

The latest GST data takes the average monthly collection in 2023-24 to Rs 1.68 lakh crore.

Source: Ministry of Finance

Monthly GST collections have risen over the years. From averaging under Rs 1 lakh crore per month in 2017-18 - its first year - collections rose rapidly after the pandemic-hit 20202-21 to average Rs 1.51 lakh crore in 2022-23.

The latest GST numbers come a day before the GST Council meets via video-conferencing. The unscheduled August 2 meeting will likely see the Council discuss ways in which clarity can be provided on the legal amendments required as well as on the tax treatment following its decision to levy a 28 percent tax on the face value of real-money games.

The meeting comes after the GST Council's July 11 decision to levy a 28 percent tax on the full value of the money paid by users to play skill-based on online games in a uniform manner with no distinction made between game of skill and chance caused an uproar.

While online gaming companies have made a representation to the finance ministry seeking a review of the decision, a roll-back of the same is unlikely.