July GST collection rises 28% to ₹1.49 lakh cr

The gross GST (Goods and Services Tax) revenue collected in July 2022 stood at ₹1,48,995 crore on better compliance, reporting, and steady economic recovery. The GST revenue collection for July is the 2nd highest ever and 28% higher than the revenues in the same month last year when the GST revenue stood at ₹1,16,393 crore. The GST revenue in June 2022 was ₹1,44,616 crore.

In FY23 so far, the gross GST collection has remained above the ₹1.40 lakh crore mark --the highest ₹1.67 lakh crore in April, ₹1.41 lakh crore in May, ₹1.45 lakh crore in June and ₹1.49 lakh crore in July. This is the sixth time the monthly GST collection crossed the ₹1.40-lakh-crore mark since the inception of GST.

The finance ministry data shows that of the entire collection of ₹1.48 lakh crore in July, ₹25,751 crore is CGST (Central Goods and Services Tax), ₹32,807 crore is SGST (State Goods and Services Tax), and ₹75887 crore (including ₹79,518 crore collected on import of goods) is IGST (Integrated Goods and Services Tax) and ₹995 crore was collected on the import of goods.

"During the month, revenues from import of goods were 48% higher and the revenues from domestic transaction, including import of services, are 22% higher than the revenues from these sources during the same month last year," says the finance ministry.

Showing a steady increase, the monthly GST revenues have been more than ₹1.4 lakh crore for five months in a row now. The government data shows the GST revenue growth till July 2022 over the same period last year is 35%, and displays a very high buoyancy. "This is a clear impact of various measures taken by the (GST) Council in the past to ensure better compliance. Better reporting coupled with economic recovery has been having a positive impact on the GST revenues on a consistent basis," the ministry adds.

During June 2022, 7.45 crore e-way bills were generated, which was marginally higher than 7.36 crore in May 2022, shows the data.

In July, essential food items like atta, paneer, curd, rice, oats, organic food, pulses and bred were put under the 5% GST slab. Besides, hospital rooms with rent above ₹5,000 and ostomy appliances also attract 5% GST. Those staying at hotels also need to pay more as the GST Council implemented a 12% tax on hotel rooms offering tariffs of up to ₹1,000 per day. Items like charts and maps (atlases) are also taxed at 12% now. The government also charges 18% GST on tetra packs and on cheques issued by banks.

However, later finance minister Nirmala Sitharaman clarified that items like rice, pulses, wheat, flour, oats, maize and curd won’t attract any GST when sold loose. “Is this the first time such food articles are being taxed? No. States were collecting significant revenue from foodgrain in the pre-GST regime. Punjab alone collected more than ₹2,000 crore on food grain by way of purchase tax. UP collected ₹700 crore,” the finance minister added.

She said the Fitment Committee—consisting of officers from Rajasthan, West Bengal, Tamil Nadu, Bihar, Uttar Pradesh, Karnataka, Maharashtra, Haryana and Gujarat—had also examined this issue over several meetings and made its recommendations for changing the modalities to curb misuse.