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Time of India
02-07-2025
- Business
- Time of India
GST collections up 6.2%, slowest since last Sept
New Delhi: GST collections grew 6.2% to Rs 1,84,597 crore in June, marking the slowest pace of expansion since last September. The numbers for transactions in May indicated weak demand as collections from domestic sources rose 4.6% to Rs 1,38,906 crore, while those from imports clocked double-digit growth of 11% and reached Rs 45,690 crore. There was double-digit growth during April and May, resulting in average monthly collections of over Rs 2 lakh crore so far this year. The latest GST data comes on the back of weak industrial production as well as muted growth in direct taxes during the first quarter of the current financial year. "Around 6% growth in GST collections, coupled with less than 4% growth in advance tax collection during the first quarter of FY26, does indicate softening of demand and a cautious outlook. One of the reasons could be conservative spending by consumers, which may improve in the next couple of months,," said Pratik Jain, partner at Price Waterhouse & Co. "Coming on the 8th anniversary of the introduction of GST, it is hoped that such muted growth in collection on a year-on-year basis is just an aberration," said Karthik Mani, partner for indirect tax at BDO India. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Print
02-07-2025
- Business
- The Print
Gross GST collections rise 6.2 pc to over Rs 1.84 lakh cr in Jun
In May, the Goods and Services Tax (GST) collection was Rs 2.01 lakh crore. It touched a record high of Rs 2.37 lakh crore in April this year. Gross GST collections stood at Rs 1,73,813 crore a year ago, as per government data released on Tuesday. New Delhi, Jul 1 (PTI) Gross GST collections increased by 6.2 per cent to over Rs 1.84 lakh crore in June but slipped below the Rs 2 lakh crore mark recorded in the previous two months. In June, gross revenues from domestic transactions rose 4.6 per cent to about Rs 1.38 lakh crore, while GST revenue from imports grew 11.4 per cent to Rs 45,690 crore. The gross Central GST revenues stood at Rs 34,558 crore, State GST revenues at Rs 43,268 crore and Integrated GST at about Rs 93,280 lakh crore in June. Revenues from Cess were Rs 13,491 crore. Meanwhile, total refunds during the month rose by 28.4 per cent to Rs 25,491 crore. The net GST mop-up stood at about Rs 1.59 lakh crore, registering a 3.3 per cent year-on-year growth. Looking at the numbers on a month-on-month basis, the net GST collections of June this year have shown a reduction of 8.48 per cent, with collections from the domestic market and imports showing a fall, Karthik Mani, Partner, Indirect Tax, BDO India, said. Coming on the 8th anniversary of the introduction of GST, it is hoped that such muted growth in collection on a year-on-year basis is just an aberration and GST collections would be back to the usual growth trajectory in the coming months, he added. While large states like Maharashtra, West Bengal, Karnataka, Rajasthan, and Tamil Nadu have reported collection increases of 4 to 8 per cent, other states like Uttar Pradesh, Punjab and Gujarat reported contraction between 1 and 4 per cent. Some states like Haryana, Bihar and Jharkhand have shown median increases of 10 per cent. According to Vivek Jalan, Partner, Tax Connect Advisory, after two successive months of Rs 2 lakh crore plus GST revenues and double-digit growth, Rs 1.85 lakh crore collections in June 2025 seem a little dampening. However, the YTD growth of 11.8 per cent in GST still gives a tax buoyancy of more than 1 per cent, which means that India is still in the 'Goldilocks situation' amid global turmoil, Jalan added. PTI DP DP BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Hindu
01-07-2025
- Business
- The Hindu
As GST completes 8 years, tax experts call for fuel inclusion, fewer rates
As the Goods and Services Tax (GST) completes eight years of implementation on July 1, tax experts acknowledge its successes but say a lot more work needs to be done in terms of simplification and rationalisation of rates. Among the big reforms suggested are the inclusion of fuel in the GST regime, the reduction in the number of tax slabs, and streamlining audits and investigations. GST was implemented on July 1, 2017, and brought the country under a single indirect tax regime — goods and services sold in the country were taxed at the same rate across all states and union territories. 'In 2024–25, GST recorded its highest-ever gross collection of ₹22.08 lakh crore, reflecting a year-on-year growth of 9.4%,' the Ministry of Finance said in a release on Monday. 'The average monthly collection stood at ₹1.84 lakh crore.' Tax experts acknowledge that GST is much simpler than the previous regime where the sale of the same item could be taxed differently in each state. They added that, even in the last eight years, significant simplification has been brought in the GST system. However, they also point out that now it is time for the next phase of reforms in the indirect tax system. The next phase, GST 2.0, must focus on four priorities: expanding the tax base by bringing in sectors like petroleum and electricity, rationalising the GST rate structure, minimising input tax credit restrictions, and streamlining audits and investigations,' Bipin Sapra, Partner and Indirect Tax Policy Leader at EY India said. He added that, as India moves towards the ambition of becoming a $5 trillion economy, the GST system must move towards being a 'stabilising force' to becoming a 'strategic enabler of ease of doing business, investment, and inclusive growth'. A report by PwC, too, has recommended that petrol, diesel, natural gas and other petroleum products should be included in GST. Currently, the GST law has a provision for the inclusion of these items, but it requires the GST Council — comprising the Union and State Finance Ministers — to approve the decision to include them. 'Excluding these products, which make up a large part of costs for industries such as oil and gas, transport and logistics, has resulted in significant tax cascading and has caused cash flow problems for businesses,' the PwC report noted. 'A policy change that includes these items under GST, along with a system to protect state revenues would simplify the tax structure, ease cash flow issues for businesses, and support the original goals of GST.' The other issue, according to Karthik Mani, Partner – Indirect Tax at BDO India, is the procedural hassles that come with GST. 'While the Government has initiated steps to simplify the law by rationalising the tax slabs and automating the compliance system, it would be essential for the Government to address the procedural challenges and high value litigations on minor issues that are overshadowing the efforts of the Government,' Mr. Mani said. The PwC report also talks about how, given the 'substantial number of cases currently pending, exacerbated in part by the absence of a GST Appellate Tribunal (GSTAT), there is an opportunity to revisit and strengthen the dispute resolution framework under the GST law to enhance efficiency and timely redressal'. The third broad suggestion by the tax experts was to reduce the number of tax slabs under GST. Currently, there are five slabs — 0%, 5%, 12%, 18% and 28% — not counting the special rates of 0.25%, 1% and 3%, on various kinds of gold, silver, and diamonds. In addition, the Centre imposes a GST Compensation Cess on the items in the 28% slab. The Hindu had previously reported on how the GST Council, in its next meeting, would discuss how best to minimise the number of items in the 12% slab.
