GST collection surge 8% YoY at ₹1.74 lakh crore in June; Govt. stops monthly data release

Gross Goods and Services Tax (GST) collections in June, stood at ₹1.74 lakh crore, which is up 8% YoY, according to official sources. The amount collected in the preceding month was ₹1,73,000 crore.

However, the Finance Ministry has discontinued releasing detailed GST collection data on day 1 of every month. This practice continued for 74 months.

The GST collection for June 2024, has been the slowest in three years, while the May collections this year were the slowest in 34 months.

Experts believe that this low GST revenue growth may be the effect of the slowing down of economic activities during the election period and a levelling off of the collections after showing perpetual growth trends.

Until Monday evening, the Finance Ministry hadn’t officially declared June’s indirect tax receipts. Usually, the Finance Ministry releases the monthly GST data on the first of every month, depicting state-wise collection data and revenue accrued from domestic transactions and imports.

The growth in gross GST revenues last month is behind the 12.4% growth in April and 10% growth in May. The gross GST revenues in Q1 FY24 was ₹5,57,006 crore, which is barely 10.2% up from ₹5.5 lakh crore collected in the corresponding period a year ago. It reflects a rise in domestic transactions and imports.

The net GST collections in April surged by 15.5% to ₹1.92 lakh crore out of the gross revenue of ₹2.1 lakh crore. But, the net GST revenue slipped to 6.9% in May at ₹1.44 lakh crore. There is no official statement on the net GST collections in June.

7th Anniversary of GST

July 1, 2024, also marks the seventh anniversary of the GST and the Ministry has named the theme for the 7th GST Day Sashakt Vyapar Samagra Vikas (empowered trade, overall growth). In a post on X, the Finance Ministry said, “With reduced tax rates on household goods after GST implementation, #7yearsofGST has brought happiness and relief to every home through lower GST on household appliances and mobile phones.”