Thursday, 02 May, 2024
The introduction and implementation of Goods and Service Tax marked was a turning point in India’s history of taxation. Image Source: IANS
The GST revenue numbers show overall strong performance and sustained economic momentum.
The end of fiscal year 2023-24 has brought cheers for the central government as the GST collection has increased by 11.7 percent. A significant milestone was reached in FY 2023–24 when overall gross GST collection of Rs. 20.18 lakh crore, up 11.7 percent from the previous year, surpassed Rs 20 lakh crore. This fiscal year's average monthly collection is Rs 1.68 lakh crore, which is more than the Rs 1.5 lakh crore average from the previous year. As of March 2024, the current fiscal year's GST revenue, net of refunds, is Rs 18.01 lakh crore, up 13.4 percent over the same period the previous year.
The gross GST revenue collected in the month of March 2024 was Rs 1.78 lakh crore of which Central Goods and Service Tax (CGST) was Rs 34,532 crore, State Goods and Service Tax (SGST) was Rs 43,746 crore, Integrated Goods and Service Tax (IGST) was Rs 87,947 crore. (Including Rs 40,322 crore collected on import of goods) and cess is Rs 12,259crore (including Rs 996 crore collected on import of goods). March was the tenth month in the FY 2023-24 when the GST collection crossed the mark of Rs 1.60 lakh crore.
The introduction and implementation of Goods and Service Tax marked was a turning point in India’s history of taxation. In a diverse and federal nation like India, where many tax laws were unified into a single system, the adoption of this complete system was especially noteworthy.
Gross GST collection from April to March 2023-24 increased by an impressive 13 percent year over year to Rs 18.40 lakh crore. For FY 2023–2024, the average monthly gross collection is Rs 1.68 lakh crore, which is more than the Rs 1.5 lakh crore received in the equivalent period of the previous year. As of March 2024, the fiscal year's GST revenue, net of refunds, is Rs 18.01 lakh crore, up 13.4 percent over the same period of the previous year. The GST revenue numbers show overall strong performance and sustained economic momentum.
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 2023 at Rs. 1,87,035 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 chart also shows better trends of GST collection in the current financial year as compared to FY2022-23. The GST collection in April 2023 was Rs 1,87,035 crore as compared to Rs 1,67,540 crore in April 2022. A similar trend was witnessed during the months of May and June. In October 2023, the GST collection was Rs 1,72,003 crore as compared to Rs 1,51,718 crore in October 2022.
The number of taxpayers has dramatically increased, rising from Rs 63.9 lakh in 2017 to over Rs 1.40 crore at the moment. GST revenues have significantly increased despite the modification to the threshold turnover limitations. The monthly average was Rs 89,885 crore in the first year, but it has since stabilised at a healthy 'new normal' of Rs 1.66 lakh crore in the most recent fiscal year, peaking at Rs 1.87 lakh crore in April 2023.
“GST collection, marked by an impressive 11.5 percent year-on-year growth rate in March, underscores the resilience of our economy in the face of global challenges,” said Saurabh Agarwal, tax partner, EY.
