Amid the apprehensions that revenues may take a hit because of sluggish sales across the country in the first month of GST, there is a good news for the government, the collection of Integrated Goods and Services Tax (IGST) from imports crossed Rs 20,000 crore in July - the first month of the roll out of the new indirect tax regime, pointing towards a major jump in revenues. Total customs revenues in July 2017 stood at Rs 26,500 crore as against Rs 16,625 crore collected in July 2016.
IGST collections have also received a boost from the fact that there is a component of state GST as well in the tax. The rise in customs revenues on imports should take care of any decline in GST collections because of any production-related disruption after the rollout of the new regime. IGST collections are first revenue trends on the new tax as also indication of the largely smooth rollout.
Collection of IGST on imports started at midnight on rollout day as the levy became payable soon after goods entered the country unless specifically exempted. IGST on imports has replaced countervailing duty (CVD), levied in lieu of excise duty, and special additional duty (SAD). IGST is the sum of central GST and state GST levied on a local product and is in addition to the basic customs duty.
Overall GST trends would be available only in August when the final tax collection numbers for July are collated. Central Board of Excise and Customs would carry out a detailed analysis of the initial trends when the final numbers become available.
Start Research-backed Investing ...Now. Subscribe to Sapphire
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: