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
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 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, the Finance Ministry said. The gross GST revenue collected in the month of June 2023 was Rs 1,61,497 crore of which Central Goods and Service Tax (CGST) was Rs 31,013 crore, State Goods and Service Tax (SGST) was Rs 38,292 crore, Integrated Goods and Service Tax (IGST) was Rs 80,292 crore. (Including Rs 39,035 crore collected on import of goods) and cess is Rs 11,900 crore (including Rs 1,028 crore collected on import of goods).
The revenues for the month of June 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 18 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.
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 data on GST collection released by the Ministry of Finance coincides with the sixth anniversary of GST. 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.
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.
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 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 on Saturday 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.
Parag Mehta, Partner, Indirect Tax, N.A. Shah Associates said, "GST collections in June have surpassed expectations. Settling of GST law, amnesty scheme and anti-evasion drive are bringing desired results. Further the strengthening of GSTN system and generating various discrepancy reports is also helping the trade and authorities. It appears the collection will exceed the budgeted figures."
