Wednesday, 09 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
Talking about the average monthly GST collection in the FY2020-21, FY2021-22 and FY2022-23 was Rs 94,734, Rs 1,23,608 and Rs 1,50,640 respectively.
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.
Recently, the monthly Goods and Service Tax (GST) revenues have exceeded the mark of Rs. 1.4 lakh crore for the sixteenth straight month in a row as GST revenues were recorded at Rs 1.61 lakh crore in June 2023. It is for the fourth 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 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. Talking about the average monthly GST collection in the FY2020-21, FY2021-22 and FY2022-23 was Rs 94,734, Rs 1,23,608 and Rs 1,50,640 respectively.
Talking about the GST collection in July 2023, the gross GST revenue stands at Rs 1,65,105 of which CGST is Rs 29,773 crore, SGST is Rs 37,623 crore, IGST is Rs 85,930 crore (including Rs 41,239 crore collected on import of goods) and cess is Rs 11,779 crore (including Rs 840 crore collected on import of goods). The revenue for July 2023 is 11% more than the GST revenue for the same month in the previous year.
Abhishek Jain, partner and national head - indirect tax, KPMG, said, “The continued growth in GST collections with 1.6L and above being the norm brings a substantial cheer. With approaching normal period of limitation for FY 17-18 and approaching festive season, this cheer is expected to only increase."
Source: Ministry of Finance
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 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 June 2023, the GST collection was Rs 1,61,497 crore as compared to Rs 1,44,616 crore in June 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 1.50 lakh crore in the most recent fiscal year, peaking at Rs 1.87 lakh crore in April 2023.
Finance Minister Nirmala Sitharaman stated that the levy under the goods and services tax (GST) has been lower than it was prior to the GST on many common-use items. She refuted the reference to GST as 'Gabbar Singh' tax rates. Instead, she claimed that by removing the 'tax-on-tax' cascading effect, the GST has assisted in lowering rates for consumers. The GST has increased state revenue as well.
