GST mop-up dips in Aug to Rs1.12 lakh cr

Mumbai: GST collections have fallen in August, though marginally. The GST collections were recorded at to Rs 1.12 lakh crore in August from Rs 1.16 lakh crore in July "The dip in the GST collections to Rs 1.12 lakh crore in August from Rs 1.16 lakh crore in July has belied the healthy improvement in the GST e way bills to a daily average of 2.1 million in July from 1.8 million in June, which was reflective of the lifting of restrictions especially across the Southern states. Nevertheless, the GST collections remain healthy at well above Rs 1.0 lakh crore, the YoY growth is as high as 30 per cent, and the ad hoc settlement of unapportioned IGST will also help to ease the cash flows of the Centre and the states," says ICRA chief economist, Aditi Nayar.

The sequential dip in the GST collections, lower-than-expected core sector growth, and moderation in the August manufacturing PMI suggest that some caution is warranted regarding the strength of the recovery that is underway in the ongoing quarter. We expect GDP growth in the ongoing quarter to range between 7.8-8.8 per cent, with the absolute level of GDP to continue to trail the pre-pandemic level as the services sector struggles to catch up with the rest of the economy, she added.

The gross GST revenue collected in the month of July was Rs 1,16,393 crore of which CGST is Rs 22,197 crore, SGST is Rs 28,541 crore, IGST is Rs 57,864 crore (including Rs 27,900 crore collected on import of goods) and Cess is Rs 7,790 crore (including Rs 815 crore collected on import of goods). The figure includes GST collection received from GSTR-3B returns filed between 1st July to 31st July as well as IGST and cess collected from imports for the same period.

The revenues for the month of July are 33 per cent higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 36 per cent higher and the revenues from domestic transaction (including import of services) are 32 per cent higher than the revenues from these sources during the same month last year. CA Geetika Shrivastava, Executive Partner, Tattvam Advisors says that e-way bills (EWB) have witnessed a steady for July and August at 6.33 crore. Daily average generation of EWB at 21.1 lakh with 2 per cent rise in July.

On yoy basis, the GST collections have gone up. Still, they have fallen m-o-m. The govt had extended a GST amnesty scheme is also responsible for this to a certain extent, she said.