The goods and services tax collections grew 11 per cent to over Rs 1.59 lakh crore in August on the back of improved compliance and reduced evasion.

Central GST in August stood at Rs 28,328 crore, state GST Rs 35,794 crore, integrated GST Rs 83,251 crore (including Rs 43,550 crore collected on the import of goods) and cess Rs 11,695 crore (including Rs 1,016 crore collected on the import of goods).

“In August, revenues from the import of goods were 3 per cent higher and the revenues from domestic transactions (including import of services) were 14 per cent higher than the revenues from these sources during the same month last year,” the finance ministry said.

The GST collection was over Rs 1.43 lakh crore in August 2022.

Revenue secretary Sanjay Malhotra said GST collections have grown more than the nominal GDP growth rate in the April-June quarter despite no increase in tax rates. “This is because of better compliance and improved tax collection efficiency,” Malhotra said, adding tax evasion and avoidance have also been low.

Vivek Jalan, partner, Tax Connect Advisory, said: “The central government’s Make in India scheme also seems to be starting to reap results as domestic GST collections show a growth of 14 per cent and import collections show a growth of only 3 per cent.”

“However, more needs to be done to propel domestic consumption. For example the customs duty of certain finished goods (such as lithium ion cells) are far less than of raw materials. If these anomalies are removed, it will lead to more growth in domestic GST consumption and lead to greater GDP growth in India.”

KPMG partner and national head indirect taxes Abhishek Jain said with the approaching festive season, GST collections for the government are expected to be better in the coming months.