After facing flak from the public for not releasing data for June 2024, the Government of India has finally released the Goods and Service Tax (GST) Collection data for July 2024. The GST collection in July 2024 experienced a significant rise, showcasing a robust growth of 10.3% to over ₹1.82 trillion. This increase, primarily driven by domestic transactions in goods and services, marks the third-highest monthly collection since the GST regime’s inception on July 1, 2017. These results have been released following the recently announced 2024 Union Budget and the 53rd GST Council meeting.

According to the data released on August 1, 2024, the gross GST revenue for July stood at ₹1,82,075 crore, which includes:

• Central GST (CGST): ₹32,386 crore
• State GST (SGST): ₹40,289 crore
• Integrated GST (IGST): ₹96,447 crore (including ₹48,039 crore collected on imports)
• Compensation cess: ₹12,953 crore

After accounting for refunds of ₹16,283 crore, the net GST collection was ₹1.66 trillion, reflecting a 14.4% increase compared to last year. The gross GST revenue has consistently shown an upward trend, with April 2024 setting a record high at ₹2.10 trillion.

State-Wise GST Collection Highlights In July 2024

State-wise, Maharashtra led the GST collection with ₹28,970 crore, followed by Karnataka at ₹13,025 crore, Gujarat at ₹11,015 crore, Tamil Nadu at ₹10,490 crore, and Uttar Pradesh at ₹9,125 crore. Notably, these figures exclude GST on the import of goods.

The rise in GST revenue was not uniform across all states. While states like Karnataka and Gujarat showed double-digit growth rates of 13%, others like Telangana and Andhra Pradesh recorded much lower figures, with Andhra Pradesh even showing a 7% decline.

The overall GST collection for the first four months of FY25 stood at ₹7.39 trillion, marking a 10.2% year-on-year growth. This growth in GST revenue indicates a positive trend in the economy, reflecting increased compliance and economic activities.

GST Reforms And Future Prospects

The government has been actively working on GST reforms to simplify the tax structure and improve compliance. Recently, a rate rationalisation panel was reconstituted to suggest changes in the current GST rates, aiming to streamline them to three distinct rates. Currently, GST is levied at four primary rates: 5%, 12%, 18%, and 28%, in addition to some essential commodities that are exempt from GST.

Challenges In GST Collection

Despite the overall positive growth, some challenges need to be addressed. Several states reported subdued growth in GST collections, and there were significant variances in the growth rates of different sectors. Addressing GST evasion, improving GST return filing processes, and enhancing GST e-invoicing systems are critical areas that require continuous focus.

Highlights From The July 2024 GST Collection Data

Gross GST Revenue:

• Total: ₹1,82,075 crore (10.3% growth from July 2023)
  • CGST: ₹32,386 crore
  • SGST: ₹40,289 crore
  • IGST: ₹96,447 crore (includes ₹47,009 crore from imports)
  • Compensation Cess: ₹12,953 crore

Net GST Revenue (after refunds):

• Total: ₹1,65,793 crore (14.4% growth from July 2023)
  • CGST: ₹30,414 crore
  • SGST: ₹37,842 crore
  • IGST: ₹84,880 crore
  • Compensation Cess: ₹12,657 crore

Domestic Revenue:

• Gross Revenue: ₹1,34,036 crore (8.9% growth from July 2023)
• Refunds: ₹7,813 crore (34.1% decrease from July 2023)

Import Revenue:

• Gross Revenue: ₹48,039 crore (14.2% growth from July 2023)
• Refunds: ₹8,470 crore (1.4% growth from July 2023)

Year-to-Date (YTD) Revenue:

• Gross: ₹7,38,894 crore (10.2% growth from the same period last year)
• Net: ₹6,55,966 crore (11.0% growth from the same period last year)

Conclusion

The robust growth in GST collection in July 2024 underscores the effectiveness of the GST regime in India. With ongoing reforms and efforts to improve compliance, the GST system is poised to become even more efficient, contributing significantly to the nation’s economic growth. As the government continues to refine and optimise the GST framework, the focus remains on sustaining high collection growth, ensuring GST compliance, and minimising evasion to maximise revenue.

Key Takeaways From GST Collection Data For July 2024:

• July 2024 saw a 10.3% increase in GST collection, reaching ₹1.82 trillion.
• The net GST revenue, after refunds, stood at ₹1.66 trillion, a 14.4% increase from the previous year.
• State-wise, Maharashtra topped the GST collection chart with ₹28,970 crore.
• The government is working on rationalising GST rates to simplify the tax structure.
• Despite overall growth, some states showed subdued growth, highlighting the need for targeted reforms and compliance improvements.

The steady rise in GST revenue reflects the growing tax base and improved compliance, contributing to India’s overall economic stability and growth.

Official GST Collection July 2024 Data Download Link – Click Here
August 2024 GST Collection Report – Click Here