Wednesday, 09 Oct, 2024
By: Yash Gupte
The State of the Economy report released by the Reserve Bank of India (RBI) shows that there has been a significant improvement in the GST collections in 2022-23 as compared to the previous financial year. Image Source: IANS
The gross GST revenue collected in the month of February 2023 was Rs 1,49,577 crore of which CGST was Rs 27,662 crore, SGST was Rs 34,915 crore, IGST was Rs 75,069 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 1.49 lakh crore in February 2023, the Finance Ministry said. The gross GST revenue collected in the month of February 2023 was Rs 1,49,577 crore of which Central Goods and Service Tax (CGST) was Rs 27,662 crore, State Goods and Service Tax (SGST) was Rs 34,915 crore, Integrated Goods and Service Tax (IGST) was Rs 75,069 crore (including Rs 35,689 crore collected on import of goods) and cess was Rs 11,931 crore (including Rs 792 crore collected on import of goods)," the ministry said in a statement. Also, the State of the Economy report released by the Reserve Bank of India (RBI) shows that there has been a significant improvement in the GST collections in 2022-23 as compared to the previous financial year.
The revenue for February 2023 was Rs. 1,33,026 crore, which was12 percent more than the GST collection for the same month last year. In comparison to the same month last year, the income from imports of products was 6 percent higher and the income from domestic transactions, which includes the import of services, was 15 percent higher than February 2022. Though the GST collection in February 2023 remained above the mark of Rs 1.4 lakh crore, it failed to achieve the mark of Rs 1.5 lakh crore. As compared to January 2023, there was a drop in the GST collection in February 2023.
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.
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. Though the collection has decreased, it recorded a 28 percent Y-o-Y increase in August as the revenue collection was reported to be Rs. 1,12,020 crore in August 2021 and Rs. 1,43,612 crore in the previous month. The GST collection in January 2023 was second highest in the current financial year as the GST revenues stood at Rs 1,57,554 crore.
The sequential decline in GST collections in February 2023, according to Investment Information and Credit Rating Agency of India Limited (ICRA) Chief Economist Aditi Nayar, is partially attributable to the increase in the January figure from the quarter-ending inflows for the month of December that were remitted in the following month.
According to Deloitte India Partner M S Mani, All the large states have recorded significant increases ranging from 10 percent to 24 percent compared to the same month last year and this shows that the economic growth and the initiatives taken to strengthen compliance are working.
Vivek Johri, Chairman, Central Board of Indirect Taxes and Customs (CBIC), said that the biggest reason for increased GST collection is that there has been a significant increase in I-T return filing and compliance. He added that inflation is also one of the reasons behind increase in GST collections.
