Gross Goods and Services Tax (GST) receipts increased by 56 percent from a year earlier to Rs 1.45 lakh crore, the second-highest monthly total.
Since March, monthly GST receipts have been above the 1.40 lakh crore mark, reaching Rs 1.41 lakh crore in May.
At a celebration marking five years of the GST, Finance Minister Nirmala Sitharaman stated, “We are now… proving that the GST collections remain over 1.40 lakh crores.” “The rough bottom line appears to be Rs 1.40 lakh crore. We only take in more than that; we don’t go below it.”
Following April, June saw the second-highest gross GST collection.
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In addition to being the second-highest collection ever, June 2022 also broke the historical tendency of June being a low collecting month, according to a statement from the government. “Anti-evasion efforts, particularly those taken against false billers, have contributed to the increased GST along with the economic recovery. Since the implementation of the GST, this month’s gross cess collection is the highest.
The total income for June was Rs 25,306 crore for CGST, Rs 32,406 crore for SGST, Rs 75,887 crore for IGST, and Rs 11,018 crore for the GST compensation cess.
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The government paid CGST and SGST a total of Rs 29,588 crore and Rs 24,235 crore, respectively, from IGST. In addition, the Centre arbitrarily paid the States and Centre a total of Rs 27,000 crore in IGST in a 50:50 split.
After regular and ad hoc settlement, the combined income for the Centre and the States in June was Rs 68,394 crore for CGST and Rs 70,141 crore for SGST.
Aditi Nayar, chief economist at ICRA, noted that the economic recovery and low base, as well as the transfer of high commodity prices into output inflation, have all contributed to the headline GST collections’ rapid on-year rise of 56%.
However, the revenues are remarkable compared to the ICRA’s projected monthly average for FY23.
According to her, this suggests a significant gain for the government of almost Rs 1.2 lakh crore compared to its budget forecasts for CGST of Rs 6.6 lakh crore.
“Most states could be able to weather the end of the GST compensation period if GST receipts increase at the anticipated rate of roughly 17% in FY2023. However, those states that rely more heavily than others on GST compensation as a source of revenue may find FY2023 to be particularly difficult, according to Nayar.
State GST compensation for this year concluded on June 30. A dozen states have requested an extension of the payout, but nothing has been decided as of yet. Next GST Council meeting is scheduled for the first week of August.