The Ministry of Finance issued a press release on 1st August 2022 stating that the monthly GST collections for July 2022 account for Rs.1,48,995 crore. It is the second highest monthly collection since the introduction of GST. The highest one was recorded for April 2022, being Rs.1,67,540 crore.
The press release also highlighted that this figure is 28% more than the GST revenues in the same month last year. The revenues for July 2021 stood at Rs.1,16,393 crore. While the collections towards CGST account for Rs.25,751 crore, the SGST amounts to Rs.32,807 crore.
On the other hand, the IGST collections account for Rs.79,518 crore, which includes Rs.41,420 crore accumulated on importing goods. The cess collected works out to Rs.10,920 crore, which also includes Rs.995 crore towards the import of goods.
The government has compensated Rs.32,365 crore towards CGST and Rs.26,774 crore towards SGST out of the total IGST collected. After the regular settlement, the cumulative revenue of both the Centre and states in July 2022 is Rs.58,116 crore towards CGST and Rs.59,581 crore towards the SGST.
In July 2022, goods import revenue was 48% more. In contrast, domestic revenue (including service imports) was 22% greater on a Year-on-Year (Y-o-Y) basis. The monthly GST collections have been consistently above the Rs.1.4 lakh crore threshold for five months. It shows a steady rise in the collections Month-on-Month (M-o-M) basis.
The rise in GST revenue till July 2022 across the same time last year is 35% and portrays stability and constant growth. The press release further highlighted that the improvement is on account of several measures by the GST Council to improve compliance.
Further, it said that better reporting and the economic recovery had consistently had a favourable impact on the GST revenues. In June 2022, taxpayers generated a total of 7.45 crore e-way bills, slightly higher than 7.36 crore generated in May 2022.
It is anticipated that with the GST rate revision and withdrawal of exemption on several items coming into effect from 18th July 2022, the revenue collection in August 2022 will be higher than the previous month. Correction of the inverted tax structure will also provide a better accurate revenue picture for the month.
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Annapoorna, popularly known as Anna, is an aspiring Chartered Accountant with a flair for GST. She spends most of her day Singing hymns to the tune of jee-es-tee! Well, not most of her day, just now and then.