India reports GST collection above Rs 1.4 lakh crore for sixth straight month in August

The revenues for the month of August 2022, registered 28 percent increase over the GST revenues of Rs 1,12,020 crore collected in August 2021.

The collection in August is, however, lower than Rs 1.49 lakh crore collected in July. The mop-up was at a record high of Rs 1.67 lakh crore in April.

KPMG in India Partner Indirect Tax Abhishek Jain said, "The consistent high collections indicate upward economic trajectory despite fluctuating COVID cases and to some extent attributable to inflation and better compliance being ensured by the government." N A Shah Associates, Partner, Indirect Tax, Parag Mehta said the collection increase is due to better compliance and the removal of various exemptions from July 2022.

"Further, with the festive season setting in, the collections for the next 2-3 months will also show an upward trajectory, Mehta said. Deloitte India Partner MS Mani said the collections reflect the strength of the underlying economic factors.

"With the onset of the festival season, which is typically a large consumption driver for all businesses, the GST collections in the coming months would also be expected to be robust," Mani added. Nexdigm, Director Indirect Tax, Sanjay Chhabria said higher collections are signs of recovery of trade & economy post the COVID-19 pandemic and we could continue to witness such higher tax buoyancy during the upcoming festivities in the country.

ICRA Chief Economist Aditi Nayar said looking ahead, the YoY growth in GST collections is likely to remain well above 20 per cent in September 2022, before tempering down to 12-15 per cent in December quarter, on a normalising base, trending close to the nominal GDP expansion. "We continue to foresee a considerable upside in the CGST collections relative to the FY2023 BE, more than offsetting the expected loss in excise collections," Nayar said.