October 10, 2022
Between April 1 and October 8, refunds amounting to INR.1.53 trillion have been issued
Growth of tax revenue stood at 9% YoY in April-August, 2022
Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections grew by 16.73% and 32.3%
GST collections, on the other hand, remained over the INR 1.4 trillion mark for the seventh month in a row
India’s gross direct tax collections increased by 23.8% year-on-year (YoY) to INR 8.98 trillion until October 8 FY23, according to a report from the Ministry of Finance. The total amount of refunds was 16.3% higher than in the same period last year, at INR 7.45 trillion.
Between April 1 and October 8, refunds amounting to INR.1.53 trillion have been issued, which is 81% higher than refunds issued during the same period, last year.
According to the report, Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections grew by 16.73% and 32.3%, respectively. After the adjustment of refunds, the net growth in collections for both PIT and CIT (including Securities Transaction Tax) rose by 16.29% and 17.35%, respectively.
The report mentioned that direct and indirect taxes collections (post-refunds) declined by 8% in August this year, standing at INR 1.51 trillion. Media reports said that due to a doubling of tax transfers to the States and net devolution to States Collections, revenue collections in August FY23 were 71% lower than during the same month last year.
Growth of tax revenue stood at 9% YoY in April-August, 2022. During the April-July period, the growth stood at 26%.
GST collections, on the other hand, remained over the INR 1.4 trillion mark for the seventh month in a row. The gross GST receipts came in at INR 1.47 trillion in September 2022.
Key Takeaway
With inflation reportedly between 6-7%, it is imperative that direct tax collections are above the inflation rate. As both GST and direct tax collections have been strong, it reflects a strong economic recovery.
Source: Financial Express