An Overview of India's Goods and Services Tax Collections in July 2023

The Goods and Services Tax (GST) revenue in India for July 2023 totaled Rs.1,65,105 crore, showing an increase from the Rs.1,61,497 crore collected in June. This figure marks the second-highest monthly collection recorded since the introduction of GST, surpassed only by April 2023's numbers. Furthermore, July 2023 represents the fifth instance where monthly GST collections have exceeded the Rs.1.6 lakh crore threshold. Compared to the previous year, July 2023 witnessed an 11% year-on-year (YoY) growth in GST collections.

Breakdown of GST Collections for July 2023

The total GST collection for July 2023 comprised:

• Central GST (CGST): Rs.29,773 crore
• State GST (SGST): Rs.37,623 crore
• Integrated GST (IGST): Rs.85,930 crore (which includes Rs.41,239 crore from imported goods)
• Cess: Rs.11,779 crore (with Rs.840 crore from imported goods)

Following regular settlements from the Integrated GST, the Central government received Rs.39,785 crore towards CGST, while states received Rs.33,188 crore towards SGST. This adjustment brought the total revenue for the Centre to Rs.69,558 crore and for the states to Rs.70,811 crore for July 2023.

Analysis of July 2023 GST Collections

July 2023 stands out for being the fifth month since GST's inception to surpass Rs.1.6 lakh crore in collections. It also marks the seventeenth consecutive month where collections exceeded Rs.1.4 lakh crore, and the eighth time since July 1, 2017, that the Rs.1.5 lakh crore mark was crossed. Revenues generated from domestic transactions, including service imports, demonstrated a 15% year-on-year growth. Overall, the GST revenues for July 2023 were 11% higher than the Rs.1,48,995 crore collected in July 2022. A consistent upward trend in GST collections has been observed since April 2023, and despite a dip in May 2023, an optimistic outlook for further momentum is anticipated during the 2023-24 financial year, attributed to an improving economy.

State-wise GST Collection for July 2023

Mizoram reported the highest year-on-year increase in GST collection at 47%, closely followed by Lakshadweep at 45%. Other regions showing strong growth included Andaman and Nicobar Islands, Center Jurisdiction, Jammu and Kashmir, and Meghalaya. In terms of absolute values, Maharashtra continued its lead with the highest collection of Rs.26,064 crore. Key states such as Karnataka, Tamil Nadu, Gujarat, Uttar Pradesh, and Haryana also maintained strong collection figures. Conversely, Manipur experienced a decline in its GST collection for July 2023.

The following table presents a state and union territory-wise comparison of GST collections between July 2022 and July 2023:

State-wise SGST Settlement from IGST

The Press Information Bureau (PIB) released details regarding the SGST amounts disbursed to states and Union Territories from the Integrated GST collected in June 2023. Similar to previous months, Maharashtra, Uttar Pradesh, and Karnataka received the highest portions.

The following table provides a detailed breakdown of SGST collections, the SGST portion from IGST, and the total for each state/UT:

The Finance Ministry formally announced the July 2023 GST collections in a press release issued by the PIB on August 1, 2023.