Wednesday, 09 Oct, 2024
By: Anshul Vipat
The monthly Goods and Service Tax (GST) revenues have exceeded the mark of Rs. 1.4 lakh crore for the seventh month in a row
The monthly Goods and Service Tax (GST) revenues have exceeded the mark of Rs. 1.4 lakh crore for the seventh straight month in a row as GST revenues rose to over Rs 1.55 lakh crore in January 2022, the Finance Ministry said. The gross GST revenue collected in the month of January 2023 was Rs 1,55,922 crore of which CGST was Rs 28,963 crore, SGST was Rs 36,730 crore, IGST was Rs 79,599 crore (including Rs 37,118 crore collected on import of goods) and cess was Rs 10,630 crore (including Rs 768 crore collected on import of goods)," the ministry said in a statement.
The revenues in the current financial year up to January 2023 are 24 percent higher than the GST revenues during the same period last year. This is for the third time, in the current financial year, GST collection has crossed Rs 1.50 lakh crore mark. The GST collection in January 2023 is the second highest next only to the Rs 1.68 lakh crore gross mop-up reported in April 2022.
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
Among the 5 months compared in the chart, 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. 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 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 in August 2021 and Rs. 1,43,612 in the previous month.
Talking about state-wise GST collection, Bihar reported the highest growth in revenues at 36 percent, followed by Nagaland (30 percent), Arunachal Pradesh (27 percent), with Gujarat and Andhra Pradesh seeing GST inflows rise by 26 percent each. Tamil Nadu’s revenues rose 25 percent, followed closely by Rajasthan and West Bengal (24 percent), Madhya Pradesh (22 percent) and Maharashtra (20 percent).
Among the Union Territories, Ladakh reported a sharp 68 percent spike in revenues, followed by Dadra Nagar Haveli (37 percent), Chandigarh (33 percent) and Puducherry (30 percent). However, Daman and Diu reported a whopping 86 percent drop in GST collections, with Lakshadweep and Andaman and Nicobar Islands also recording contractions of 36 percent and 19 percent, respectively.
According to the experts, the GST revenue collection is expected to increase in the upcoming months due to the festive season but at the same time, the increase in Repo rates by the RBI and tightening of other economic and market policies, the GST collection is expected to rise gradually but not exponentially.
