GST from imports hit Rs.50,000 crores in August, raises share in overall mop-up:

Gross GST collections were Rs 1.74 lakh crores in August, a year-on-year growth of 10%, and net collections (after refunds) were Rs 1.5 lakh crores, up 6.5%. Even though consumer goods imports are a major part of the inward shipments, the rise in imports of industrial raw materials and intermediate goods also contributed to the surge in GSR collections from imports. GST revenues from imports touched an all-time high of close to Rs 50,000 crores in August this year, indicating robust investment-led demand in the economy. In fact, GST revenues from imports as a share of the tax mop-up from domestic transactions touched 40% in August, sharply up from 22.7% in April and 35.8% in July. This augurs well for the economy, as it indicates investment activities remained strong in July-August, after the pick-up witnessed in the April-June quarter. Even though consumer goods imports are a major part of the inward shipments, the rise in imports of industrial raw materials and intermediate goods also contributed to the surge in GSR collections from imports. Gross fixed capital formation grew a robust 7.5% in April-June, and increased its share in the gross domestic product (GDP) to 34.8% from 34.6% in the year ago quarter, despite polls-induced slump in Government capex. GST figures indicate the trend may have continued after Q1, while public capex too is regaining pace. Gross GST collections were Rs.1.74 lakh crores in August, a year-on-year growth of 10%, and net collections (after refunds) were Rs 1.5 lakh crores, up 6.5%.