GST Collections in India Show 10% Growth in August 2024 Despite Monthly Decline
In August 2024, India’s GST collection reached Rs 1,74,962 crore, marking a 10% increase from Rs 1,59,069 crore collected in August 2023. However, the collection showed a slight decline from July 2024’s Rs 1.82 lakh crore.
Expert Opinions
Manoranjan Sharma, Chief Economist at Informerics Ratings, explained that the monthly decline should be viewed in the context of overall tax buoyancy and historical growth. He emphasized that the GST collection has shown remarkable growth since its inception.
Saurabh Agarwal, Tax Partner at EY, noted that the decline in net GST revenue is due to increased refunds. He highlighted the government’s efforts to reduce working capital costs for businesses and rationalize tax rates over time.
Regional Growth
The positive growth in GST collections in regions like Nagaland, Assam, Andaman & Nicobar, and Ladakh indicates holistic economic development across India.
Yearly Growth
So far in 2024, the total GST collection has been Rs 9.13 lakh crore, 10.1% higher than the Rs 8.29 lakh crore collected in the same period of 2023.
Doubts Revealed
GST -: GST stands for Goods and Services Tax. It is a tax that people pay when they buy goods (like toys or clothes) and services (like haircuts or movie tickets) in India.
Rs -: Rs stands for Rupees, which is the currency used in India. It’s like how in the USA, they use dollars.
crore -: A crore is a unit in the Indian number system. One crore equals 10 million. So, Rs 1,74,962 crore means 1,74,962 times 10 million rupees.
tax buoyancy -: Tax buoyancy means how well the tax system is working. If the economy is doing well, people and businesses make more money and pay more taxes, showing good tax buoyancy.
refunds -: Refunds are when the government gives back some money to people or businesses because they paid too much tax.
Nagaland -: Nagaland is a state in the northeastern part of India. It is known for its rich culture and beautiful landscapes.
Assam -: Assam is another state in northeastern India. It is famous for its tea gardens and the Brahmaputra River.
Ladakh -: Ladakh is a region in northern India, known for its stunning mountains and Buddhist monasteries.
