India collected Rs 1.75 trillion in Goods and Services Tax (GST) for the month of August, registering a growth of 10 per cent from a year earlier.
“A ten per cent increase in collections on a year-on-year basis at the start of the festive season for the year indicates that consumption is robust and will only improve further in the coming festival months,” said M. S Mani, partner, Deloitte.
He said that this would give renewed confidence that the collection targets for the year would be achieved. There are some differences in the GST collection increases across major states, which may need a deep dive.
Experts believe the increase in collections for the month is also attributable to the increased focus on GST investigations and audits, which typically increase compliance and resultant collections.
The ability of large states like Maharashtra, Karnataka, Uttar Pradesh, Madhya Pradesh, and Haryana to record double-digit increases in collections once again indicates robust consumption in these states, accompanied by the tax authorities’ measures to improve compliance and crack down on evasion.