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Time of India
01-08-2025
- Business
- Time of India
GST collections rise 7.5% in July, slower than last year
. New Delhi: Goods and services tax (GST) collections rose 7.5% to Rs 1,95,735 crore in July, showing signs of a pick-up from the previous month, although the growth was slower than a year ago. According to the latest official numbers, collections from domestic sources in July, based on transactions in June, were 6.7% higher at a little over Rs 1.4 lakh crore. Those from imports were better, rising 9.7% to Rs 52,712 crore. In recent months, the domestic source has been weak, which is also visible in the muted expansion of factory output and a sharp moderation in direct tax collections. On the positive side, refunds soared 67% to Rs 27,147 crore, ensuring adequate liquidity for businesses. As a result, net collections grew 1.7% to Rs 1,68,588 crore. In recent months, finance minister Nirmala Sitharaman has also nudged tax department officials, both direct and indirect, to ensure that refunds are processed quickly. J&K, Chandigarh, Odisha, Jharkhand, Mizoram, Manipur and Goa witnessed contraction in collections, while some of the large jurisdictions, such as Delhi (2%) Gujarat (3%), Maharashtra (6%), UP and Karnataka (7% each) saw muted growth. The numbers also resulted in calls for a review of GST. "Further 117% rise in domestic refunds, most of which may be inverted duty structure refunds, show that GST rate rationalisation should be done sooner rather than later. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo While govt has removed inverted duty structure on many goods previously, still certain new-age goods suffer inverted duty structure. For example, lithium-ion batteries are liable to 18% GST but parts of lithium-ion batteries may still be 28%. This would lead to an inverted duty structure and consequent higher refunds leading to inefficiency in the GST system," said Vivek Jalan, partner at Tax Connect Advisory, a consulting firm. Besides, there were suggestions to look at ways to step up revenue. "After a tepid growth in the previous month as well, the GST council may like to discuss the possible measures to augment revenues in the next meeting. With compensation cess going away, states may be a bit more concerned about slowdown in GST collections," said Pratik Jain of Price Waterhouse & Co. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Time of India
01-08-2025
- Business
- Time of India
Manufacturing activity at 16-month high, GST inflow up 7.5%
. New Delhi: Goods and services tax (GST) collections rose 7.5% to Rs 1,95,735 crore in July, showing signs of a pick-up from the previous month, although the growth was slower than a year ago. According to the latest official numbers, collections from domestic sources in July, based on transactions in June, were 6.7% higher at a little over Rs 1.4 lakh crore. Those from imports were better, rising 9.7% to Rs 52,712 crore. In recent months, the domestic source has been weak, which is also visible in the muted expansion of factory output and a sharp moderation in direct tax collections. On the positive side, refunds soared 67% to Rs 27,147 crore, ensuring adequate liquidity for businesses. As a result, net collections grew 1.7% to Rs 1,68,588 crore. In recent months, finance minister Nirmala Sitharaman has also nudged tax department officials, both direct and indirect, to ensure that refunds are processed quickly. J&K, Chandigarh, Odisha, Jharkhand, Mizoram, Manipur and Goa witnessed contraction in collections, while some of the large jurisdictions, such as Delhi (2%) Gujarat (3%), Maharashtra (6%), UP and Karnataka (7% each) saw muted growth. The numbers also resulted in calls for a review of GST. "Further 117% rise in domestic refunds, most of which may be inverted duty structure refunds, show that GST rate rationalisation should be done sooner rather than later. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If you have a mouse, play this game for 1 minute Navy Quest Undo While govt has removed inverted duty structure on many goods previously, still certain new-age goods suffer inverted duty structure. For example, lithium-ion batteries are liable to 18% GST but parts of lithium-ion batteries may still be 28%. This would lead to an inverted duty structure and consequent higher refunds leading to inefficiency in the GST system," said Vivek Jalan, partner at Tax Connect Advisory, a consulting firm. Besides, there were suggestions to look at ways to step up revenue. "After a tepid growth in the previous month as well, the GST council may like to discuss the possible measures to augment revenues in the next meeting. With compensation cess going away, the states may also be a bit more concerned about slowdown in GST collections," said Pratik Jain, partner at Price Waterhouse & Co. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
The Print
02-07-2025
- Business
- The Print
Gross GST collections rise 6.2 pc to over Rs 1.84 lakh cr in Jun
In May, the Goods and Services Tax (GST) collection was Rs 2.01 lakh crore. It touched a record high of Rs 2.37 lakh crore in April this year. Gross GST collections stood at Rs 1,73,813 crore a year ago, as per government data released on Tuesday. New Delhi, Jul 1 (PTI) Gross GST collections increased by 6.2 per cent to over Rs 1.84 lakh crore in June but slipped below the Rs 2 lakh crore mark recorded in the previous two months. In June, gross revenues from domestic transactions rose 4.6 per cent to about Rs 1.38 lakh crore, while GST revenue from imports grew 11.4 per cent to Rs 45,690 crore. The gross Central GST revenues stood at Rs 34,558 crore, State GST revenues at Rs 43,268 crore and Integrated GST at about Rs 93,280 lakh crore in June. Revenues from Cess were Rs 13,491 crore. Meanwhile, total refunds during the month rose by 28.4 per cent to Rs 25,491 crore. The net GST mop-up stood at about Rs 1.59 lakh crore, registering a 3.3 per cent year-on-year growth. Looking at the numbers on a month-on-month basis, the net GST collections of June this year have shown a reduction of 8.48 per cent, with collections from the domestic market and imports showing a fall, Karthik Mani, Partner, Indirect Tax, BDO India, said. Coming on the 8th anniversary of the introduction of GST, it is hoped that such muted growth in collection on a year-on-year basis is just an aberration and GST collections would be back to the usual growth trajectory in the coming months, he added. While large states like Maharashtra, West Bengal, Karnataka, Rajasthan, and Tamil Nadu have reported collection increases of 4 to 8 per cent, other states like Uttar Pradesh, Punjab and Gujarat reported contraction between 1 and 4 per cent. Some states like Haryana, Bihar and Jharkhand have shown median increases of 10 per cent. According to Vivek Jalan, Partner, Tax Connect Advisory, after two successive months of Rs 2 lakh crore plus GST revenues and double-digit growth, Rs 1.85 lakh crore collections in June 2025 seem a little dampening. However, the YTD growth of 11.8 per cent in GST still gives a tax buoyancy of more than 1 per cent, which means that India is still in the 'Goldilocks situation' amid global turmoil, Jalan added. PTI DP DP BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
