• UGI USER
  • Aug 02, 2024
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JULY GST COLLECTIONS HIT THIRD-HIGHEST RECORD

Why in the news?

GST collections surged to ₹1.82 lakh crore in July, marking the third-highest monthly level, with significant revenue growth.

source:scribd

GST Receipts Surge to 10.3% Growth in July:

Record Collections and Revenue Growth

  • July’s gross GST collections hit ₹1.82 lakh crore, the third-highest monthly figure.
  • Overall GST revenue grew 10.3% from June’s low of 7.6%, with import taxes rising 14.2%.
  • Gross collections were up 4.75% from June’s ₹1.73 lakh crore, and net collections increased by 14.4% to ₹1.65 lakh crore.

Refunds and Revenue Trends

  • Net revenues from imports rose 17.3%, while domestic transactions saw a 13.5% increase.
  • Domestic GST refunds fell 34.1% to ₹16,283 crore, contributing to the higher net revenue growth.
  • Refunds overall were down 19.4% compared to the previous year and 18.4% from June.

State Performance and Overall Revenue

  • Revenue growth was uneven across states, with 14 states underperforming.
  • Despite strong national figures, some states, including Andhra Pradesh and Himachal Pradesh, experienced revenue contraction.
About Goods and Services Tax(GST):

  • Introduction: GST introduced via 101st Constitution Amendment Act, 2016.
  • Purpose: Major indirect tax reform promoting ‘One Nation One Tax’.
  • Coverage: Replaces excise duty, VAT, service tax, luxury tax, etc.
  • Nature: Consumption tax levied at final consumption point.
  • Benefit: Eliminates double taxation, cascading effect, and tax multiplicity.
  • Input Tax Credit: GST paid on inputs can be offset against tax on final goods/services.

Tax Structure:

  • Central GST (CGST): Covers excise duty, service tax.
  • State GST (SGST): Covers VAT, luxury tax.
  • Integrated GST (IGST): Manages inter-state trade.
  • Rates: 5%, 12%, 18%, 28% slabs.