Thursday, 10 Oct, 2024
By: Yash Gupte
The GST is a value-added tax applied on the majority of goods and services sold for domestic consumption. Image Source: IANS
The revenues for the month of May 2023 are 12 percent higher than the GST revenues in the same month last year.
The monthly Goods and Service Tax (GST) revenues have exceeded the mark of Rs. 1.4 lakh crore for the fourteenth straight month in a row as GST revenues were recorded at Rs 1.57 lakh crore in May 2023, the Finance Ministry said. The gross GST revenue collected in the month of May 2023 was Rs 1,57,090 crore of which Central Goods and Service Tax (CGST) was Rs 28,411 crore, State Goods and Service Tax (SGST) was Rs 35,828 crore, Integrated Goods and Service Tax (IGST) was Rs 81,363 crore. (Including Rs 41,772 crore collected on import of goods) and cess is Rs 11,489 crore (including Rs 1,057 crore collected on import of goods).
The revenues for the month of May 2023 are 12 percent higher than the GST revenues in the same month last year. During the month, revenue from import of goods was 12 percent higher and the revenues from domestic transactions (including import of services) are 11 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.
Aditi Nayar, Chief Economist, and Head - Research & Outreach at ICRA Ltd said, “GST revenues in May 2022 have modestly exceeded our expectations. Over the next few months, we expect GST revenues to print at Rs 1.55-1.65 lakh crore and record an expansion of 10-11 percent in Y-o-Y terms, broadly in line with the nominal GDP growth expected in FY24.”
"In terms of volume, Maharashtra, Gujarat, Karnataka along with Tamil Nadu clocked the maximum collection as these states have a large corporate base and attract most of the investments that come into India. The collections also reflect the efforts of state governments on continued focus on growth and ease of business operations which is attracting new investments. The majority of the states are reflecting double-digit growth barring a few like Punjab (which is negative), Rajasthan and West Bengal. Lesser investment in these states as compared to other major states can also be considered as one of the reasons for slow growth in these states," said Ankur Gupta, Practice Leader (Indirect Tax), SW India.
