Goods and Services Tax collection for the month of July was recorded at Rs 148,995 crore, which is 28 per cent higher as compared to the same month last year. This is the second highest revenue since the introduction of the GST in 2017. Of the total, CGST was Rs 25,751 crore, SGST was Rs 32,807 crore, IGST was Rs 79,518 crore (including Rs 41,420 crore collected on import of goods) and cess was Rs 10,920 crore (including Rs 995 crore collected on import of goods), the Ministry of Finance said in a statement.
In June 2022, total GST collections were at Rs 1.44 lakh crore. For five months in a row now, the monthly GST revenues have been more than Rs 1.4 lakh core, showing a steady increase every month. It is important to note that the GST revenue collections crossed the Rs 1.5 lakh crore mark for the first time in the month of April at Rs 1.68 lakh crore.
“The growth in GST revenue till July 2022 over the same period last year is 35% and displays a very high buoyancy. This is a clear impact of various measures taken by the Council in the past to ensure better compliance. Better reporting coupled with economic recovery has been having a positive impact on the GST revenues on a consistent basis,” the statement added. Last month, the five-year of the GST regime was completed. The government through the GST taxation system intended to bring in uniform taxes across the country, besides transparency, accountability, and a simpler registration process.
GST was introduced in the country w.e.f. 1st July 2017 and States were assured for compensation for loss of any revenue arising on account of implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for a period of five years. For providing compensation to States, Cess is being levied on certain goods and the amount of Cess collected is being credited to Compensation Fund. Compensation to States is being paid out of the Compensation Fund with effect from July 1, 2017.
In the recent GST Council meeting held in Chandigarh, several states have sought an extension of the compensation at least for a few years, if not for 5 years. Any formal decision on it is yet to be taken.