GST collections hit `1.78L cr in Mar; 2nd highest since roll-out

GROSS GOODS and Services tax (G st) collections rose 11.5 percent year-on-year to Rs 1.78 lakh crore in march( for sales in february ), the second-highest level since the july 2017 rollout of the indirect tax regime, data released by the Finance Ministry on Monday showed. A strong growth in revenue from domestic transactions even as revenue from imports moderated along with a higher compliance in the backdrop of anti-evasion measures being taken by authorities supported growth in GST collections.

The highest-ever GST collection was recorded at Rs 1.87 lakh crore in April 2023.

“Gross GST revenue for March 2024 witnessed the second highest collection ever at Rs 1.78 lakh crore, with a 11.5% year-on-year growth. this surge was driven by a significant rise in GST collection from domestic transactions at 17.6%,” the Finance Ministry said ina statement. On a net basis, taking into account the impact of refunds,g st revenue increased 18.4 per cent to Rs 1.65 lakh crore in March. For the full financial year, net GST revenue stood at Rs 18.01 lakh crore, marking a growth of 13.4 percent over the correspondingperiod last year. for 2023-24, gross GST collections, which include revenue for both states and Centre, increased to Rs 20.18 lakh crore from Rs 18.07 lakh crore in the previous financial year.

“FY 2023-24 marks a milestonewith a total gross g st collection of Rs 20.18 lakhcro re exceeding Rs 20 lakh crore, a 11.7% increase compared to the previous year. The average monthly collection for this fiscal year stands at Rs 1.68 lakhcro re, surpassing the previous year’s average of Rs 1.5 lakh crore,” the Ministry said.

With this data, Central GST (CGST) collections crossed the revised estimates of Rs 8.12 lakh crore to be Rs 8.63 lakh crore in FY24. “With a continued doubledigit growth, the CGST collections have exceeded the FY2024 RE, even as there is a modest shortfall in the GST compensation cess inflows, which are now being used to re pay the loans undertaken during the Covid period. With the CGST collections surpassing the FY2024 RE, the implicit growth needed to meet the Interim Budget Estimate for FY2025 has come down to single-digits, which appears likely to be exceeded,” A di ti nay ar, chief economist, head Re se arc handout reach, icra said.

Out of 38 states/union territories (including Centre’s jurisdiction), 26 states/uts recorded higher growth in GST collections than the national average of 11.5 per cent growth in March. In absolute terms, Maharashtra was at the top with collection of rs 27,688 crore (22 percent growth ), followed by Karnataka with collection of rs 13,014 cr ore (26 percent growth), Gujarat with Rs 11,392 crore collection (15 per cent growth), Tamil Nadu with Rs 11,017 crore (19 per cent growth) and Uttar Pradesh with Rs 9,087 crore collections (19 per cent growth ). overall, the tot a lg st collections stood at Rs 1,78,484 crore in march, out of which cent ra lg st —the tax levied on intra-state supplies of goods and services by the Centre— was rs 34,532 cr ore, state G st—the tax levied on intra-state supplies of goods and services by states—was rs 43,746 cr ore, integratedgs t—the tax levied on all inter-state supplies of goods and services—was rs 87,947 cr ore( including Rs 40,322 crore collected on import of goods) and cess was Rs 12,259 crore (including Rs 996 cr collected on import of goods).

In december, the government settled Rs 43,264 crore to Central GST and Rs 37,704 crore to State GST from Integrated GST. As a result, the total revenue for the month post settlement was Rs 77,796 crore for the Centre and Rs 81,450 crore for State GST.

Tax experts said the strong growth shows economic recovery. Abhishek Jain, Partner and National head, indirect tax,kp mg in India said, “A 17.6 percent growth in collection in march from domestic transactions indicates strong domestic economic growth and adds significant cheer to the overall increased collections. also, the average monthly collections increasing by approximately Rs 18,000 cr ore this year indicates robust growth story and recovery .”

MS Mani, Partner, Deloitte India said, “Record collections exceeding Rs 20 lakh crore during FY24 demonstrate the economic resurgence across sectors and was possible due to the measures taken by the g st authorities to improve compliance and stamp out evasion. the big focus on comparison of taxpayer behaviour across tax and corporate databases has also made businesses convinced on the need to be compliant not only in their activities, but also keep track of their vendors’ tax behaviourand ensure that the entire value chain becomes compliant.”