India’s Goods and Services Tax revenue rose by 11% year over year in august, keeping an optimistic economic trend
In August, India’s central and state governments collected a total of ₹1.59 trillion in Goods and Service Tax (GST) revenue. This amount was 11% higher than they collected the same month in the previous year. However, it’s important to note that this collection was slightly lower than they managed to gather in June, which stood at ₹1.65 trillion. In fact, the June collection matched the expected monthly GST revenue for the entire fiscal year.
Compared to July, August’s GST revenue showed a dip in the taxes collected by the central government (CGST), state governments (SGST), and revenue from imports and inter-state sales (IGST). Nevertheless, experts are not too worried about this slight fluctuation in monthly tax figures. They believe it indicates no major issues with India’s overall consumption trends.
After settling taxes for inter-state sales in August, the central government received ₹65,909 crore, while the states collected ₹67,202 crore. Typically, tax collections are higher in the first month of a quarter due to increased economic activity from the previous quarter’s end. Subsequently, there’s a slight moderation in the next two months.
For context, this fiscal year started on a strong note, with April seeing the highest-ever GST revenue collection at ₹1.87 trillion, followed by the second-highest in July. Additionally, it’s worth mentioning that revenue from importing goods saw a 3% increase compared to the previous year in August, and domestic transactions, including the import of services, were 14% higher. While there may be minor fluctuations, India’s economic outlook remains positive.
India’s major state economies, such as Uttar Pradesh, Maharashtra, Gujarat, and Tamil Nadu, have shown impressive double digit growth in their revenue from the Goods and Services Tax.In August, Maharashtra’s Goods and Services Tax revenue grew by a massive 23% to 23,282 crores.
According to official data, Karnataka registered a 16% increase to 11,116 crores, while Gujarat registered a 12% increase to 9,765 crores.
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