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In a notable development, the collection of Goods and Services Tax (GST) for the month of July has surged by 11 percent, surpassing Rs 1.65 lakh crore. This impressive growth can be attributed to robust anti-evasion measures and a notable uptick in consumer spending. Notably, this achievement marks the fifth instance since the inception of GST that monthly collections have crossed the Rs 1.60 lakh crore milestone.

Strong Anti-Evasion Measures and Consumer Spending Fuel Impressive GST Revenue Growth

The breakdown of the collection reveals that the Central Government garnered Rs 29,773 crore from GST, while the states collectively accumulated Rs 37,623 crore. Integrated GST revenues stood at Rs 85,930 crore, with a significant portion of Rs 41,239 crore arising from the import of goods. Additionally, cess collections amounted to Rs 11,779 crore, including Rs 840 crore from imported goods, as stated by the finance ministry.

Experts Emphasize Sustained Performance for Fiscal Goals and Improved Compliance

This performance showcases an 11 percent increase in revenue compared to July 2022 when GST revenue was approximately Rs 1.49 lakh crore. Economists and industry experts have weighed in on the matter. Aditi Nayar, the Chief Economist at Icra, emphasized that sustaining monthly GST collections above Rs 1.65 lakh crore for the next eight months is crucial to achieving the fiscal year 2024 target of Rs 8.1 lakh crore in CGST revenues. M.S. Mani, Partner at Deloitte India, attributed the consistent growth in GST collections to a combination of factors, including reduced e-invoicing turnover limits and enhanced state-wise GST audits, which have led to better GST compliance among businesses and consequently, stable revenue collections on a monthly basis.