NEW DELHI: Goods and Services Tax collections grew 12.4 per cent to a record excessive of Rs 2.10 lakh crore in April, aided by strong financial momentum and elevated home transactions and imports, the finance ministry mentioned on Wednesday. The GST collections have breached the Rs 2 lakh crore mark for the primary time in April this yr, it mentioned in an announcement.
“The Gross Goods and Services Tax (GST) collections hit a record high in April 2024 at Rs 2.10 lakh crore. This represents a significant 12.4 per cent year-on-year growth, driven by a strong increase in domestic transactions (up 13.4 per cent) and imports (up 8.3 per cent),” the ministry mentioned.
The GST income, which is principally taxes on items bought and providers rendered, was greater than Rs 1.78 lakh crore final month, whereas it stood at Rs 1.87 lakh crore in April 2023.
Finance Minister Nirmala Sitharaman in a submit on X (previously Twitter) lauded the efforts of tax officers for attaining the milestone.
“GST collection crosses Rs 2 lakh crore benchmark, thanks to the strong momentum in the economy and efficient tax collections,” she mentioned.
Tax specialists mentioned sturdy GST revenues in April replicate a buoyant economic system, self-compliance by companies, well timed audit and scrutiny, moreover enforcement measures taken by the division. The elevated collections additionally increase expectations of ushering in the following wave of GST reforms.
In April this yr, the mop-up below Central GST (CGST) pool stood at Rs 43,846 crore, whereas State GST (SGST) assortment reached Rs 53,538 crore and Integrated GST (IGST) Rs 99,623 crore, together with Rs 37,826 crore collected by levies on imported items.
The complete cess assortment was Rs 13,260 crore, together with Rs 1,008 crore collected on imported items.
Out of the IGST assortment, Rs 50,307 crore was settled in direction of CGST and Rs 41,600 crore in direction of SGST. This interprets to a complete income of Rs 94,153 crore for CGST and Rs 95,138 crore for SGST in April 2024 after common settlement.
“There are no dues pending on account of IGST settlement to the states,” Sitharaman mentioned in an X submit.
After accounting for refunds, the web GST income for April 2024 stood at Rs 1.92 lakh crore, a 15.5 per cent development in comparison with the identical interval final yr.
Deloitte India Partner Mahesh Jaising mentioned the constant buoyancy in GST collections has set the stage for pursuing forward-thinking reforms below GST 2.0.
PwC India Partner Pratik Jain mentioned that with the following wave of GST reforms anticipated after the formation of the brand new authorities, the expansion (in GST collections) could also be additional accelerated.
It may additionally allow the federal government to make bolder selections like price rationalisation or bringing different merchandise, comparable to ATF and pure gasoline, below the GST ambit.
According to EY tax Partner Saurabh Agarwal, the GST assortment underscores the steadfast resilience of the tax system amid evolving financial landscapes.
“The concerted efforts of the GST officials, including zero tolerance for non-filers, coupled with rigorous measures to combat fake invoicing and the registrations have significantly bolstered GST collections in the states’ coffers,” Agarwal mentioned.
Deloitte India Partner MS Mani mentioned vital GST assortment will increase have been noticed throughout all main producing and consuming states, indicating that it’s widespread and never restricted to some industrial pockets.
Tax Connect Advisory Services LLP Partner Vivek Jalan mentioned from July 2017, when GST began with a median month-to-month income of round Rs 0.9 lakh crore, to April 2024, when it grossed Rs 2.1 lakh crore, GST revenues have witnessed an approximate development of 13 per cent each year on common.
Considering the inflation at 5 per cent and GDP development of seven per cent, there was a median buoyancy of 1 per cent on a median each year during the last seven years, Jalan mentioned.
Sanjay Chhabria, Senior Director, Indirect Tax at Nexdigm, mentioned the numerous rise in home transactions could be attributed to shopper spending being targeted on beating the summer time warmth, with purchases like air-conditioners, drinks, in addition to elevated journey throughout lengthy holidays from faculties and schools.
“This one-time leap is a new benchmark, which reflects robust economic buoyancy and high consumer spending,” Chhabria mentioned.
“The Gross Goods and Services Tax (GST) collections hit a record high in April 2024 at Rs 2.10 lakh crore. This represents a significant 12.4 per cent year-on-year growth, driven by a strong increase in domestic transactions (up 13.4 per cent) and imports (up 8.3 per cent),” the ministry mentioned.
The GST income, which is principally taxes on items bought and providers rendered, was greater than Rs 1.78 lakh crore final month, whereas it stood at Rs 1.87 lakh crore in April 2023.
Finance Minister Nirmala Sitharaman in a submit on X (previously Twitter) lauded the efforts of tax officers for attaining the milestone.
“GST collection crosses Rs 2 lakh crore benchmark, thanks to the strong momentum in the economy and efficient tax collections,” she mentioned.
Tax specialists mentioned sturdy GST revenues in April replicate a buoyant economic system, self-compliance by companies, well timed audit and scrutiny, moreover enforcement measures taken by the division. The elevated collections additionally increase expectations of ushering in the following wave of GST reforms.
In April this yr, the mop-up below Central GST (CGST) pool stood at Rs 43,846 crore, whereas State GST (SGST) assortment reached Rs 53,538 crore and Integrated GST (IGST) Rs 99,623 crore, together with Rs 37,826 crore collected by levies on imported items.
The complete cess assortment was Rs 13,260 crore, together with Rs 1,008 crore collected on imported items.
Out of the IGST assortment, Rs 50,307 crore was settled in direction of CGST and Rs 41,600 crore in direction of SGST. This interprets to a complete income of Rs 94,153 crore for CGST and Rs 95,138 crore for SGST in April 2024 after common settlement.
“There are no dues pending on account of IGST settlement to the states,” Sitharaman mentioned in an X submit.
After accounting for refunds, the web GST income for April 2024 stood at Rs 1.92 lakh crore, a 15.5 per cent development in comparison with the identical interval final yr.
Deloitte India Partner Mahesh Jaising mentioned the constant buoyancy in GST collections has set the stage for pursuing forward-thinking reforms below GST 2.0.
PwC India Partner Pratik Jain mentioned that with the following wave of GST reforms anticipated after the formation of the brand new authorities, the expansion (in GST collections) could also be additional accelerated.
It may additionally allow the federal government to make bolder selections like price rationalisation or bringing different merchandise, comparable to ATF and pure gasoline, below the GST ambit.
According to EY tax Partner Saurabh Agarwal, the GST assortment underscores the steadfast resilience of the tax system amid evolving financial landscapes.
“The concerted efforts of the GST officials, including zero tolerance for non-filers, coupled with rigorous measures to combat fake invoicing and the registrations have significantly bolstered GST collections in the states’ coffers,” Agarwal mentioned.
Deloitte India Partner MS Mani mentioned vital GST assortment will increase have been noticed throughout all main producing and consuming states, indicating that it’s widespread and never restricted to some industrial pockets.
Tax Connect Advisory Services LLP Partner Vivek Jalan mentioned from July 2017, when GST began with a median month-to-month income of round Rs 0.9 lakh crore, to April 2024, when it grossed Rs 2.1 lakh crore, GST revenues have witnessed an approximate development of 13 per cent each year on common.
Considering the inflation at 5 per cent and GDP development of seven per cent, there was a median buoyancy of 1 per cent on a median each year during the last seven years, Jalan mentioned.
Sanjay Chhabria, Senior Director, Indirect Tax at Nexdigm, mentioned the numerous rise in home transactions could be attributed to shopper spending being targeted on beating the summer time warmth, with purchases like air-conditioners, drinks, in addition to elevated journey throughout lengthy holidays from faculties and schools.
“This one-time leap is a new benchmark, which reflects robust economic buoyancy and high consumer spending,” Chhabria mentioned.
