June GST Collection Rises To ₹1.85 Lakh Crore; Manufacturing Hits 14-Month High

New Delhi: Maintaining the pace of India’s growing economy, the country’s gross goods and services tax or GST mop-up in June stood at Rs 1.85 lakh crore, marking a 6.2 per cent increase compared to the same month last year, while India’s manufacturing sector activity rose to a 14-month high of 58.4 in June, up from 57.6 on the back of expansion in output, new orders, and job creation, two separate data showed on Tuesday.

However, the finance ministry said that the government’s focus on GST, which completes eighth year on Tuesday, is to promote ease of doing business, ensure stronger compliance and foster broader economic inclusion. “As GST enters its ninth year, it continues to evolve, prioritising ease of doing business, stronger compliance, and broader economic inclusion, solidifying its role as a driver of India's economic progress,” the ministry said.

As per the data released by the finance ministry, the gross GST collections increased by 6.2 per cent to over Rs 1.84 lakh crore in June, while it was Rs 1.73 lakh crore during the same month a year ago. “During the last month, the GST collection was Rs 2.01 lakh crore, while it touched a record high of Rs 2.37 lakh crore in April this year,” the ministry said.

In June, the data showed, gross revenues from domestic transactions rose 4.6 per cent to about Rs 1.38 lakh crore, while GST revenue from imports grew 11.4 per cent to Rs 45,690 crore. “The gross Central GST revenues stood at Rs 34,558 crore, State GST revenues at Rs 43,268 crore and Integrated GST at about Rs 93,280 lakh crore in June. Revenues from cess was at Rs 13,491 crore and total refunds during the month rose by 28.4 per cent to Rs 25,491 crore,” it showed.

Meanwhile, India’s manufacturing sector activity rose to a 14-month high in June on the back of expansion in output, new orders, and job creation. It is also marked by one of the fastest increases not only in exports but also a record upturn in employment generation in the country, a private survey showed.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) – an indicator of sector performance - was 58.4 in June, while it was 57.6 in May. In the PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction. "Robust end-demand fuelled expansions in output, new orders, and job creation,” said Pranjul Bhandari, chief India economist at HSBC.

The survey said that June also saw a quicker upturn in new order inflows. “The rate of expansion was the strongest in close to a year. According to panel members, the increase was supported by marketing efforts and a substantial rise in exports. Indeed, growth of new export orders gained considerable momentum in June.

“To keep up with strong demand -- particularly from international markets, as evidenced by the substantial rise in new export orders -- Indian manufacturing firms had to tap deeper into their inventories, causing the stock of finished goods to continue shrinking,” Bhandari added.