GST collection rises by 11% to approximately Rs 1.6 lakh cr in August: Revenue secretary

The Goods and Services Tax revenues for August 2023 showed 11% year-on-year growth, reaching approximately ₹1.6 lakh crore. This surge can be attributed to increased compliance and a notable reduction in tax evasion, as stated by Revenue Secretary Sanjay Malhotra during a press briefing on Friday.

Compared to the GST collection of ₹1.4 lakh crore recorded in August 2022, the latest figures reflect a spike in collection.

Highlighting India's economic performance, Malhotra emphasized that the GDP growth rate for the June quarter stood at 7.8%, with a nominal growth rate of 8%. Remarkably, GST revenues during the same quarter surged by more than 11%, leading to a tax-to-GDP ratio of over 1.3.

Malhotra underscored that this surge in GST collections occurred without any increase in tax rates. Instead, the key factors driving this positive trend are enhanced compliance and improved tax collection efficiency, coupled with low tax evasion and avoidance.