New Delhi, Sep 1 As GST collections registered a 6.5 per cent rise in August, experts on Monday said what will now be interesting to watch is the impact on collections in the coming months, particularly with the anticipated rate rejig and certain revenue streams stalling, such as those from online real-money gaming.
GST collections have been rising steadily to remain above the Rs 1.8 lakh crore mark for the eighth month in a row, reflecting the growing economic activity in the country.
"Broadly, collections have been aligned with the past couple of months, though refund disbursals have seen some reduction," said Abhishek Jain, Partner and Head, Indirect Tax Partner, KPMG in India.
The gross domestic revenue grew 9.6 per cent to Rs 1.37 lakh crore, while tax from imports dipped 1.2 per cent to Rs 49,354 crore in August. GST refunds were down 20 per cent year-on-year to Rs 19,359 crore.
According to Karthik Mani, Partner, Indirect Tax at BDO India, the growth in domestic GST collections is due to a growth in collections in almost all major states like Maharashtra, Karnataka, Haryana, etc, with all these states clocking 10 per cent growth in revenue collections.
"However, on a month-on-month basis, the gross GST collections have shown a decline of 4.8 per cent, and it would be an important input for the GST Council for assessing revenue loss as it considers the GST rate rationalisation proposals later this week," he noted.
The GST Council is set to meet on September 3-4 to decide on rate rationalisation for a two-slab tax structure (5 and 12 per cent).
The Council, comprising the Centre and states, will deliberate on introducing a two-slab GST rate of 5 and 18 per cent on most goods, while a separate higher 40 per cent tax will be levied on sin goods such as cigarettes, tobacco, and sugary drinks as part of the rationalisation exercise.
Buoyant tax collections in recent months have helped to strengthen the country’s fiscal position and the macroeconomic fundamentals, which help to ensure stable growth.
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