gst-collections-hit-record-high-of-rs-2-10-lakh-crore

Goods and Services Tax (GST) collections surged to an unprecedented Rs 2.10 lakh crore in April, marking a substantial 12.4 percent year-on-year growth.

 

This remarkable uptick, propelled by heightened domestic transactions and increased imports, has ignited anticipation for the next wave of GST reforms following the formation of the new government.

 

The finance ministry's announcement heralded the milestone breach of the Rs 2 lakh crore mark in April.

 

The GST revenue surpassed Rs 1.78 lakh crore last month, exhibiting a notable increase from the Rs 1.87 lakh crore recorded in April 2023.

 

Breakdown of the April figures reveals a noteworthy composition: Central GST (CGST) collections reached Rs 43,846 crore, State GST (SGST) climbed to Rs 53,538 crore, and Integrated GST (IGST) soared to Rs 99,623 crore, including levies on imported goods totaling Rs 37,826 crore.

 

The total Cess collection amounted to Rs 13,260 crore, including Rs 1,008 crore collected on imported goods.

 

Further analysis reveals the settlement of Rs 50,307 crore to CGST and Rs 41,600 crore to SGST from the IGST collection, translating to a total revenue of Rs 94,153 crore for CGST and Rs 95,138 crore for SGST in April 2024 following regular settlement.

 

Finance Minister Nirmala Sitharaman confirmed on X (formerly Twitter) that there are no outstanding dues pertaining to IGST settlement to the states.

 

Post-refunds, the net GST revenue for April 2024 stood impressively at Rs 1.92 lakh crore, indicating a commendable 17.1 percent growth compared to the same period last year.

 

Tax experts attribute the robust GST revenues to a variety of factors, including a buoyant economy, business self-compliance, effective audit and scrutiny processes, and enforcement measures undertaken by the department.

 

Experts suggest that the robust GST revenue could prompt the government to consider significant reforms, such as rate adjustments and expanding GST coverage to include products like aviation turbine fuel (ATF) and natural gas. This surge in GST collections, spanning major states, mirrors widespread economic vitality.

 

Deloitte India's M S Mani and Tax Connect Advisory's Vivek Japan note the remarkable growth trajectory of GST revenues, signaling resilience amid economic shifts.

 

Nexdigm's Sanjay Chhabria attributes the uptick in domestic transactions to increased consumer spending during extended school holidays, particularly on items like air-conditioners and beverages.