The collection of goods and services tax (GST) slipped below the Rs 1.5-trillion mark in February, a month after touching the second-highest figure.
The mop up of Rs 1.49 trillion in February is 5.1 per cent lower than the figure achieved in the previous month. In January, the GST mop up stood at Rs 1.57 trillion, the second highest after Rs 1.68 trillion in April of the current fiscal year. However, the latest figure is 12 per cent higher than Rs 1.33 trillion a year ago.
Also, the monthly GST revenues remained over Rs 1.4 trillion for 12 straight months, the finance ministry said on Wednesday while releasing the provisional data.
The ministry attributed the sequential dip in collection to February being a 28-day month.
It emphasised that this month reported the highest cess collection of Rs 11,931 crore since implementation of the GST regime. Economists expect central GST (CGST) collection to meet the FY23 Budget Estimates.
“The sequential dip in GST collections in February 2023 is partly on account of the boost to the January figure from the quarter-ending inflows (for December, which were remitted in the following month),” said Aditi Nayar, chief economist, ICRA.
Of the total revenue collected, CGST was Rs 27,662 crore, states GST was Rs 34,915 crore and Integrated GST was Rs 75,069 crore (including Rs 35,689 crore collected on import of goods). And, cess was Rs 11,931 crore (including Rs 792 crore collected on import of goods).
During the month, revenue from import of goods was six per cent higher and that from domestic transactions (including import of services) was 15 per cent higher year-on-year (YoY).
“This month witnessed the highest cess collection of Rs 11,931 crore since implementation of GST,” the ministry said.
According to Nayar, there is a large divergence in the growth of revenues from import of goods and that from domestic transactions during the month.
GST revenues from import of goods are likely to have been dampened by the sequential and YoY contractions in merchandise imports in January, Nayar added.
Abhishek Jain, partner, Indirect Tax at KPMG in India, said “The growth in domestic and import transactions are quite interesting. It indicates a growing self reliance within the domestic market and is a positive sign for the Indian economy,” he said.
On state-wise collection, Deloitte India partner M S Mani said all the large states have reported significant increases ranging from 10 per cent to 24 per cent compared to the same month last year.
This indicates that economic growth and the steps taken to improve compliance are positive.
Highlighting the GST compensation to states, the ministry said that it has settled Rs 34,770 crore to CGST and Rs 29,054 crore to SGST from IGST as regular settlement.
The total revenue of the Centre and states after regular settlements in February stood at Rs 62,432 crore (CGST) and Rs 63,969 crore (SGST).
In addition, the Centre had also released the balance GST compensation of Rs 16,982 crore for June 2022 and Rs 16,524 crore to states/union territories, it added.