Telangana records five per cent growth in GST collection for June
Hyderabad: Telangana has recorded a growth of 5.3 per cent for June 2024. The state received Rs 3,352 crore revenue which is Rs 169 crore higher than in the corresponding month of last year. The growth rate is thus lower than the overall growth rate of 7.7 per cent for the country. Andhra Pradesh has recorded a growth rate of 15 per cent by achieving Rs 3,890 crore which is Rs 500 crore more than Telangana.
The country recorded a revenue of Rs 1.74 trillion for June 2024 and collected approximately Rs 39,600 crore of CGST and SGST. The IGST collections, however, stood at Rs 33,548 crores. As the country entered its eighth year of GST implementation on July 1, 2024, the GST collections in the past financial year that is 2023-24 touched a record of Rs 20.2 trillion which is about Rs 7.6 trillion higher than 2018-19.
Both CGST and SGST have shown a continuous year-on-year growth though at different rates. CGST has shown a higher growth rate as the agencies at the disposal of CGST administration have pan-India reach and hence this was possible. As compared to GDP, GST collections have shown a great buoyancy which means the GST collection rate is higher than the growth rate in GDP.
Tax collections from Maharashtra, Karnataka and Uttar Pradesh are the highest in absolute figures. But per capita collection of tax is higher in Karnataka and Telangana for the year 2023-24.
As essential commodities such as food grains do not attract any GST and consumer items on which 60 per cent of urban and rural consumers depend are taxable at five per cent only, a higher per capita collection of GST a state indicates higher consumption of non-essential commodities and services.
The commercial taxes department has initiated many measures for the augmentation of revenue. They include introduction of e-way bills for transport of petroleum and liquor in order to curb evasion on these two products. As the price of petroleum products such as diesel and petrol is lower in the neighbouring states, many of the industrial consumers are importing diesel from these states. The introduction of e-way bills will halt illegal smuggling by small players but may not alter the trade practice of big industrial consumers. However it may take some time before these measures yield results.