India’s GST collection in July up 28 per cent, second highest ever

Goods and Services Tax (GST) collection in India in July stood at Rs1,48,995 crore, second highest since introduction of GST. The collection for July is 28 per cent higher than the GST revenues recorded in the same month last year of Rs1,16,393 crore.

“Of the tolal Goods and Services Tax collection, Central GST is Rs25,751 crore, State GST is Rs 32,807 crore, Integrated GST is Rs79,518 crore and cess is Rs10,920 crore,” the Finance Ministry said in a statement.

For five months in a row now, the monthly Goods and Services Tax (GST) revenues have been more than Rs1.4 lakh crore

“During the month, revenues from import of goods was 48 per cent higher and the revenues from domestic transaction (including import of services) are 22 per cent higher than the revenues from these sources during the same month last year,” the ministry said.

The government has settled Rs 32,365 crore to Central GST and Rs26,774 crore to State GST from Integrated GST. The total revenue of Centre and the states in July after regular settlement is Rs58,116 crore for CGST and Rs59,581 crore for the SGST.

“The growth in GST revenue till July 2022 over the same period last year is 35 per cent and displays a very high buoyancy. This is a clear impact of various measures taken by the Council in the past to ensure better compliance. Better reporting coupled with economic recovery has been having positive impact on the GST revenues on a consistent basis. During the month of June 2022, 7.45 crore e-way bills were generated, which was marginally higher than 7.36 crore in May 2022,” the statement added.

Meanwhile the congress MP Manish Tewari on Monday said that during the past 14 months, the inflation rate has doubled making it the highest in 30 years.

Initiating a discussion on prise rise under Rule 193 in the Lok Sabha, he alleged that one per cent of the people are controlling 77 per cent of the nation wealth.

GST has been increased on daily items like rice, curd, paneer and unfortunately, even the children have not been spared as stationary prices have also gone up. He spoke in Hindi and concluded the debate with a Punjabi couplet saying that since the demonetisation, the country’s economy is on a downward trajectory.

Defending the government, BJP MP Nishikant Dubey said in the neighbouring countries like Sri Lanka, Bangladesh and Bhutan, the inflation is rising and so is unemployment.

“Despite such a bad situation in India, the poor are still getting two-time meal for free.. should not the Prime Minister be thanked for it as the World Bank has given funds to various countries like Egypt.”

He also attacked the Trinamool Congress over the cash recovered from former state minister Partha Chatterji’s aide and Jharkhand Congress MLAs who were arrested in Bengal.

The surge in prices of essential commodities has also been accelerated with an “unjustifiable” increase in GST by the Central government on essential commodities like pre-packed grains, fish, honey, jaggery, wheat flour, the letter noted.

“The country is also witnessing a phase of massive unemployment both in rural and urban regions... Also, the controversial, poorly conceived and hastily drawn up Agnipath scheme, which carries multiple risks, has not only subverted the long standing traditions and ethos of the armed forces but also destroyed the aspirations of millions of unemployed youths,” reads the letter.

Federation of Associations in Indian Tourism & Hospitality (FAITH), the policy federation of all the ten national associations representing the complete tourism, travel and hospitality industry of India -- DTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI & TAFI, has thanked the Fitment Committee for considering favourably the drawback of taxes on foreign tourists on their goods purchases in India. They have recommended five rationalisation measures across the tourism, travel and hospitality value chain for consideration for the next GST Council meeting.

Hotels to be allowed to charge IGST which will enable seamless availability of credit across India to all travel agents and tour operators and will thereby lead to building up a sustainable domestic holiday and meetings and conventions business within the country.

Tour operators to be enabled a special presumptive GST rate of 1.8 per cent with full GST set-offs. The current rate of 5 per cent without setoffs structurally implies that tour operators have an inbuilt margin of around 27.8 per cent which is an inherently flawed assumption of the prevailing business models. This by default creates an inherent linkage to value addition only and prevents a tax on tax.

Travel Agents be also allowed the option of exploring the reseller model for charging as they are distribution arms for airlines.