July GST Collections Surge by 10.3%, Reflecting Strong Economic Recovery

Goods and Services Tax (GST) collections for July saw a 10.3% rise, reaching Rs 182,075 crore. Total collections for 2024 are 10.2% higher year-on-year. The fiscal health boost is attributed to robust domestic consumption and increased import activity. Simplified compliance has also benefitted consumers.

The Goods and Services Tax (GST) collections for July amounted to Rs 182,075 crore, marking a 10.3% increase from the previous year's Rs 165,105 crore. Comprehensive data released on Thursday reveals year-on-year growth in CGST, SGST, IGST, and cess.

As of 2024, the cumulative GST collections have risen by 10.2% to reach Rs 7.38 lakh crore, compared to Rs 6.70 lakh crore in the same period of 2023. April saw a historic high collection of Rs 2.10 lakh crore, while May and June recorded collections of Rs 1.73 lakh crore and Rs 1.74 lakh crore respectively, according to official figures.

For the fiscal year 2023-24, total gross GST collections stood at Rs 20.18 lakh crore, an 11.7% increase over the previous year. The average monthly collection was Rs 1.68 lakh crore, surpassing the prior year's Rs 1.5 lakh crore. The surge highlights a robust domestic economy and buoyant imports, signaling strong fiscal health and resilience amidst global uncertainties.

Introduced on July 1, 2017, the GST has simplified tax compliance and reduced the cascading impact of tax, replacing a fragmented tax system. Recent reductions or eliminations in GST rates on essentials like hair oil, toothpaste, and cereals, have lowered household expenses. A Finance Ministry study suggested a 4% monthly expense saving for consumers.

The GST Council, chaired by the Union Finance Minister and including Finance Ministers from all states, continues to play a crucial role in the GST framework.

(With inputs from agencies.)