Wednesday, 09 Oct, 2024
Gross GST collection from April to February 2023-24 increased by an impressive 13 percent year over year to Rs 18.40 lakh crore. Image Source: IANS
The revenues for the month of February 2024 are 12.5 percent higher than the GST revenues in the same month last year.
The gross GST revenue collected in the month of February 2024 was Rs 1,68,337 crore of which Central Goods and Service Tax (CGST) was Rs 31,785 crore, State Goods and Service Tax (SGST) was Rs 39,615 crore, Integrated Goods and Service Tax (IGST) was Rs 84,098 crore. (Including Rs 38,593 crore collected on import of goods) and cess is Rs 12,839 crore (including Rs 984 crore collected on import of goods). February was the ninth month in the FY 2023-24 when the GST collection crossed the mark of Rs 1.60 lakh crore.
The revenues for the month of February 2024 are 12.5 percent higher than the GST revenues in the same month last year. During the month, revenue from import of goods was 13.9 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.
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 February 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 1.67 lakh crore, which is more than the Rs 1.5 lakh crore received in the equivalent period of the previous year. As of February 2024, the current fiscal year's GST revenue, net of refunds, is Rs 16.36 lakh crore, up 13 percent over the same period 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.
According to the data released by the Central Board of Direct Taxes (CBDT), India’s direct tax to GDP ratio hit a 15 year high of 6.11 percent in 2022-23. According to the data, direct taxes' share of overall tax collections has returned to pre-pandemic levels. Direct taxes primarily consist of corporation and personal income taxes. Direct tax revenue increased to 54.62 percent of total tax income in 2022–23 from 52.27 percent in 2021–22 and 46.84 percent in 2020–21, the lowest percentage in fifteen years.
According to the tax administration, the 77.8 million income tax returns filed in FY23 more than doubled the 38 million returns made in FY14. In FY23, the cost of collecting direct taxes dropped from 0.57 percent of total taxes collected in FY14 to 0.51 percent due to an increase in the use of technology and data analytics in tax administration.
Pratik Jain, Partner at Price Waterhouse & Co LLP, commented on the GST collections jump, stating, "As expected, the average monthly GST collections continue to show an increasing trend. It's particularly encouraging to see that the growth is led by domestic transactions, and year-to-date (YTD) growth of around 13% in this fiscal year surpasses the projected increase for FY 25. With this trend, it is reasonable to expect that the government may easily meet next year's collection target."
