GST Surge: India's Domestic Growth Shines Amid Global Challenges
In August, India's GST collection rose by 6.5% to Rs 1.86 lakh crore, driven by domestic sales, despite being lower than July's figures. Domestic revenue growth contrasts with a dip in import tax and export refunds, amid global tariffs. Economic activities anticipated to rise during the festive season.
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In August, India's Goods and Services Tax (GST) collection experienced a significant upturn, climbing 6.5% to exceed Rs 1.86 lakh crore. This growth indicates a robust domestic sales performance, although it remains slightly lower than the Rs 1.96 lakh crore collected in July.
The gross domestic revenue expanded by 9.6% to reach Rs 1.37 lakh crore, while tax revenue from imports showed a slight decline of 1.2% to Rs 49,354 crore during the same period. Refunds for GST fell sharply by 20% year-on-year, amounting to Rs 19,359 crore. This decline in export refunds highlights the impact of global tariffs, according to EY Tax Partner Saurabh Agarwal.
The upcoming meeting of the GST Council, which includes both central and state representatives, will focus on adjusting rates and reducing tax slabs. The anticipated GST cuts could impact future collections, necessitating close monitoring by the government, as noted by Pratik Jain, Partner at Price Waterhouse & Co LLP.
(With inputs from agencies.)
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