Thursday, 10 Oct, 2024
By: Yash Gupte
The revenue for March 2023 was Rs 1,60,122 crore which was 13 percent more than the GST collection for the same month last year.
In comparison to the first, second, and third quarters, the average monthly collections of Rs 1.51 lakh, Rs 1.46 lakh, and Rs 1.49 lakh crore respectively, the average monthly gross GST collection for the last quarter of the FY 2022–23 was Rs 1.55 lakh crore.
The monthly Goods and Service Tax (GST) revenues have exceeded the mark of Rs. 1.4 lakh crore for the twelveth straight month in a row as GST revenues were recorded at Rs 1.60 lakh crore in March 2023, the Finance Ministry said. The gross GST revenue collected in the month of March 2023 was Rs 1,60,122 crore of which Central Goods and Service Tax (CGST) was Rs 29,546 crore, State Goods and Service Tax (SGST) was Rs 37,314 crore, Integrated Goods and Service Tax (IGST) was Rs 82,907 crore. (Including Rs 42,503 crore collected on import of goods) and cess is Rs 10,355 crore (including Rs 960 crore collected on import of goods). It was for the fourth time that in the financial year 2022-23, the gross GST collection crossed Rs 1.5 lakh crore mark registering second highest collection since implementation of GST. The month of March witnessed the highest IGST collection ever.
The revenue for March 2023 was Rs 1,60,122 crore which was 13 percent more than the GST collection for the same month last year. During the month, revenues from import of goods was 8 percent higher and the revenues from domestic transaction (including import of services) are 14 percent higher than the revenues from these sources during the same month last year. The total gross collection for 2022-23 stands at Rs 18.10 lakh crore and the average gross monthly collection for the full year is Rs 1.51 lakh crore. FY 2022–2023 saw a 22 percent increase in gross GST revenues over the previous year. In comparison to the first, second, and third quarters, the average monthly collections of Rs 1.51 lakh, Rs 1.46 lakh, and Rs 1.49 lakh crore respectively, the average monthly gross GST collection for the last quarter of the FY 2022–23 was Rs 1.55 lakh crore.
The GST is a value-added tax applied on the majority of goods and services sold for domestic consumption. Consumers pay the GST, but businesses that provide products and services remit it to the government. GST is levied on the 'supply' of goods or services, as opposed to the prior concept of levy on the manufacture of things, the sale of goods, or the provision of services. The rates of CGST, SGST, and IGST are mutually agreed upon by the Centre and the States. The rates are announced based on the GST Council's suggestion. In May 2015, the GST (122nd Constitutional Amendment) Bill, 2014 was enacted. It was enacted as the Constitution (101st Amendment) Act, 2016, and went into force on September 16, 2016. The GST was implemented on July 1, 2017.
Source: Ministry of Finance
The GST revenue collection was lowest in June 2021 at Rs. 92,800 crore and the highest was recorded in the month of April in 2022 at Rs. 1,67,540 crore. The GST collection had decreased by around Rs. 27,000 crore in May 2022 as the GST revenue collection stood at Rs. 1,40,885 crore. It witnessed a gradual recovery in the months of June and July 2022 but again decreased by around Rs. 5000 crore to Rs. 1,43,612 crore in August 2022. The monthly GST collection crossed the mark of Rs 1.5 lakh crore in October 2022 and then in January 2023 when the GST collection was recorded at Rs 1,57,554 crore. The GST collection in March 2023 is second highest in FY 2022-23 and has crossed the mark of Rs 1.60 lakh for the second time since the inception of GST. The highest every monthly GST collection was reported in April 2022 at Rs 1,67,540 crore.
More than 91 percent of GST-registered businesses filed returns and paid taxes in March, indicating increased compliance and an increase in economic activity. Abhishek Jain, Partner, Indirect Tax at KPMG in India said the monthly and yearly GST collection point towards the growing trajectory of the Indian economy. He added, “Another cheer point is the highest ever compliance rate with 91.4 per cent of returns being filed in the month of March, indicating success of revenue authorities and businesses in ensuring tax compliance and preventing tax evasion."
Mahesh Jaising, Partner, Leader- Indirect Tax, Deloitte India said, “With the growth in economic activity and increased focus on GST analytics based audits, the trend should see upward trajectory in the coming months. Also, with the new FTP being rolled out from today, we have to wait and watch the impact on the import-export which is expected to have a role in GST collections too.”
