The overall GST receipts in July increased 10.3% year on year to Rs 1.82 trillion, according to figures issued by the finance ministry on Thursday. In June, revenues were Rs 1.74 trillion, up barely 8% year on year, the worst rate in three years.
Refunds given in July totaled Rs 16,283 crore, bringing the month's net revenues to Rs 1.66 trillion, up 14.4% from the previous year.
In July, gross receipts from domestic transactions increased by 8.9% year on year to Rs 1.34 trillion, while imports increased by 14.2% to Rs 48,039 crore.
Gross collections for April-July were Rs 7.39 trillion, up 10.2% year on year, with net collections of Rs 6.56 trillion, 11% more than the same period in FY24.
Pratik Jain, a partner at PwC India, believes that because growth in April-July is generally in line with budget predictions, the government and GST council should begin working on rate rationalization.
In her Budget address on July 23, Finance Minister Nirmala Sitharaman stated that in order to maximize the benefits of GST, "we (the government) will strive to further simplify and rationalize the tax structure and endeavor to expand it to the remaining sectors."
MS Mani, partner at Deloitte India, stated that while overall GST revenues increased by 10.3%, it is worth noting that the growth in GST income from imports outpaced that of domestic supply. "These collections are based on supply transactions during June 24, which is typically a slow offtake month before the start of the holiday season," he explained.
Saurabh Agarwal, tax partner at EY, predicted a probable slowdown or drop in collections in August compared to July owing to the monsoon season's impact on economic activity.
