Thursday, 10 Oct, 2024
The revenues for the month of December 2023 are 10.3 percent higher than the GST revenues in the same month last year. Image Source: IANS
Gross GST collection from April to December 2023 increased by an impressive 12 percent year over year to Rs 14.97 lakh crore, compared to Rs 13.40 lakh crore collected in the same period the previous year (April to December 2022).
The gross GST revenue collected in the month of December 2023 was Rs 1,64,882 crore of which Central Goods and Service Tax (CGST) was Rs 30,443 crore, State Goods and Service Tax (SGST) was Rs 37,935 crore, Integrated Goods and Service Tax (IGST) was Rs 84,255 crore. (Including Rs 41,534 crore collected on import of goods) and cess is Rs 12,249 crore (including Rs 1,079 crore collected on import of goods). December was the seventh month in the year 2023 when the GST collection crossed the mark of Rs 1.60 lakh crore.
The revenues for the month of December 2023 are 10.3 percent higher than the GST revenues in the same month last year. During the month, revenue from import of goods was 13 percent higher and the revenues from domestic transactions (including import of services) during the same month last year. The average gross monthly GST collection in the FY 2023-24 now stands at Rs. 1.66 lakh crore and is 12 percent per cent more than that in the same period in the previous financial year.
It is for the seventh time, the gross GST collection has crossed Rs 1.60 lakh crore mark. The average monthly gross GST collection for the first quarter of the FY 2021-22, FY 22-23 & FY 23-24 are Rs 1.10 lakh crore, Rs 1.51 lakh crore and Rs 1.69 lakh crore respectively.
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 December 2023 increased by an impressive 12 percent year over year to Rs 14.97 lakh crore, compared to Rs 13.40 lakh crore collected in the same period the previous year (April to December 2022). The first nine months of this year saw an average monthly gross GST collection of Rs 1.66 lakh crore, an increase of 12 percent over the Rs 1.49 lakh crore average during the same time in FY23.
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.
In a written reply to a question in Lok Sabha on July 31, 2023, Minister of State for Finance, Pankaj Chaudhary mentioned that the monthly average gross GST collection for the FYs 2021-22 & 2022-23 have shown 30 percent and 22 percent year on year growth respectively. The Minister added that GST is paid on a self-assessment basis and that tax administration at the federal and state levels is authorised to take enforcement action in cases of underpayment and nonpayment of GST. The detection of such instances and the recovery of unpaid or underpaid taxes are ongoing processes. He further mentioned that the government, on the recommendations of the GST Council, has been bringing several reforms in GST. These measures would improve the GST compliance and increase the GST collection.
Vivek Jalan, Partner, Tax Connect Advisory, said, "The GST collections have shown a surge of around 12 percent over last year which is certainly a robust growth. However, the efficiency of government tax machinery is calculated by the tax buoyancy generated.
Hence, to understand whether the GST machinery is outperforming the economy or not, tax buoyancy is one good measure. Considering an inflation of 5.5 percent and GDP growth of 6.5 percent, a growth in GST revenues by 12 percent just around matches the real economic growth. It means that there is NIL tax buoyancy as of now."
