India's GST Collections Surge in August 2024

India's Goods and Services Tax (GST) collections for August 2024 have shown a significant improvement, indicating strong economic growth and enhanced compliance. This positive trend reflects the country's economic recovery and expansion, driven by both domestic and import-related collections.

Total GST Revenue for August 2024

• The total gross GST revenue for August 2024 reached INR 1.75 lakh crore, representing a 10 per cent increase from the INR 1.59 lakh crore collected in August 2023.
• This substantial growth underscores the positive trajectory of the Indian economy, particularly considering the robust performance of both domestic and import collections.

Domestic Collections for August 2024

• India's domestic GST collections, which form the cornerstone of overall GST revenue, experienced a 9.2 per cent increase from INR 1.15 lakh crore in August 2023 to INR 1.25 lakh crore in August 2024.
• This significant growth in domestic collections further strengthens the narrative of a recovering and expanding Indian economy.

Central and State GST Collections for August 2024

• The Central GST (CGST) experienced a 9 per cent increase, rising from INR 28,328 crore to INR 30,862 crore.
• The State GST (SGST) also saw a surge, increasing by 7 per cent from INR 35,794 crore to INR 38,411 crore.
• These increases highlight the positive contributions of both the central and state governments to the overall GST revenue.

Integrated GST Collections for August 2024

• The Integrated GST (IGST), which encompasses inter-state trade collections, witnessed the most robust growth of 12.3 per cent, totaling INR 44,593 crore.
• This strong growth in IGST collections reflects the increasing volume of inter-state trade activity within India, a key driver of economic growth.

Cess Collections for August 2024

• Cess collections, primarily aimed at compensating states for revenue losses, also saw an increase of 4 per cent, reaching INR 11,120 crore.
• This indicates that the government is effectively managing the compensation mechanism to ensure adequate support for states.

GST Collections from Imports for August 2024

• GST collected from imports also showcased robust growth, rising by 12.1 per cent to INR 49,976 crore in August 2024.
• This strong growth reflects the increasing strength of international trade activity, a positive sign for the Indian economy.

Export-Related Refunds for August 2024

• While import collections saw a significant increase, export-related refunds also rose considerably, experiencing a 38 per cent year-over-year increase.
• This indicates that the government is facilitating export-oriented businesses by streamlining the refund process, promoting trade and boosting economic growth.

State-Wise Breakdown of GST Revenue for August 2024

• Maharashtra, India's largest industrial state, witnessed a 13 per cent increase in GST collections, bringing in INR 26,367 crore in August 2024.
• Delhi also recorded a substantial 22 per cent growth in GST collections, underscoring the expansion of its service sector.
• Some smaller states, like Manipur, experienced an impressive 38 per cent rise in GST collections, highlighting the improved economic activity in the northeastern regions.
• However, certain states like Arunachal Pradesh and Chhattisgarh experienced negative growth in GST collections, with declines of 10 per cent and 3 per cent respectively.

Year-to-Date GST Collections for April to August 2024

• The year-to-date (YTD) figures for GST collections reveal a sustained momentum, with total revenues from April to August 2024 reaching INR 9.14 lakh crore, representing a 10.1 per cent increase compared to the same period in 2023.
• This consistent growth in GST collections across the fiscal year further reinforces the positive outlook for the Indian economy.

Conclusion

The robust GST collections for August 2024 demonstrate a positive trend for India's economy. Despite challenges such as global uncertainties and inflationary pressures, the steady increase in GST revenues, driven by both domestic activity and imports, is encouraging. The government's commitment to enhancing compliance and streamlining the GST system is playing a crucial role in fostering economic growth and development.