GST kitty growth slows to single digit

GST collections grew 7.7% in June to £17.4 bn, first time in three years when monthly mop-up rose at single-digit rate.
During the month, based on transactions in May, central GST collections are estimated to have increased 3.4% to £3.20 bn, state GST went up 6.3% to £4.07 bn, according to available data. The two numbers (combined) show an 8% rise to £7.31 bn, indicating a slower increase in integrated GST levied on imports and inter-state sales and cesses. Foreign trade has remained weak due to depressed prices for several commodities.
The IGST and compensation cess data was unavailable as the official numbers were not released by govt. During the first quarter, the kitty is estimated to have swollen by 10.2% to £55.70 bn. Since December, monthly collections have increased by 10-12%, in line with the nominal growth rate.
“While the growth in collection in June seems to be on a lower side compared to previous month, overall GST collections have shown an encouraging trend over last few months. Industry hopes that the trend will enable the GST council to re-initiate the rate rationalisation exercise as indicated in the last council meeting,” said Partik Jain, partner at consulting firm PwC. Economists said one month’s data may not point to any direction.