India’s Goods and Services Tax (GST) collections for August 2024 totalled to INR 1.75 trillion (USD 20.87 billion), marking a 10% increase from the same month last year; according to a government statement released on Saturday, 2 September 2024.
In August 2024, gross GST collections surged by 10% spurred by a rise in domestic spending. Government figures reveal that revenue from domestic transactions increased by 9.2% to about INR 1.25 lakh crore (US$ 14.98 billion), while GST from imported goods rose by 12.1% to INR 49,976 crore (USD 5.99 billion).
This contrasts with July’s collections of INR 1.82 lakh crore (USD 21.82 billion) and last August’s INR 1.59 lakh crore (USD 19.06 billion). Analysts believe that the strong early growth during the festive season signals healthy consumer demand, which is promising for meeting annual collection targets.
Analysts observed that while major states like Maharashtra, Karnataka, and Uttar Pradesh reported double-digit growth in GST collections, states such as Gujarat, Andhra Pradesh, and Tamil Nadu saw only single-digit increases, which may require closer scrutiny by tax authorities. Refunds issued in August amounted to INR 24,460 crore (USD 2.93 billion), marking a substantial 38% rise from the previous year.
After adjustments, this resulted in a net GST revenue increase of 6.5%, reaching INR 1.5 lakh crore (USD 17.98 billion).
Experts predict that the ongoing festive season is likely to drive collections higher, indicating overall economic resilience.
