GST collection hits record high of ₹2.10 trillion in April
After accounting for refunds, the net GST revenue for April stood at ₹1.92 trillion, 17.1% higher than the same period last year. (Image: Pixabay)
New Delhi: The Centre’s goods and services tax (GST) collection touched a record high of ₹2.10 trillion in April.
The GST collection breached the ₹2 trillion mark for the first time, reflecting robust economic growth and administrative efficiency in tax mop-up.
The revenue collected by the Centre and states on goods and services consumed in the country in April was 12.4% higher year-on-year, as per data from the finance ministry.
“This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions, up 13.4%, and imports, up 8.3%,” the ministry said in a statement.
After accounting for refunds, the net GST revenue for April stood at ₹1.92 trillion, 17.1% higher than the same period last year.
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In March, the government collected the second highest monthly receipt of ₹1.78 trillion, since the unified indirect tax was introduced in July 2017. The consistent uptrend in collections was indicative of formidable domestic economic growth, tax experts said.
“The consistent growth in GST collections with this one being the highest collection ever is a big cheer and reflects upon the strong domestic economy, especially given the fact that growth on account of domestic transactions is 13.4% as compared to imports which is at 8.3%,” said Abhishek Jain, partner & national head, indirect tax, KPMG.
He noted that another significant reason could be linked to deadline for GST audits and corresponding notices issued during this year.
The Central Goods and Services Tax (CGST) was ₹43,846 crore in the month, with the state Goods and Services Tax (SGST) contributing ₹53,538 crore. Integrated Goods and Services Tax (IGST) was ₹99,623 crore, which included ₹37,826 crore collected on imported goods.
GST from cess levied on automobiles, tobacco and aerated drinks was ₹13,260 crore, including ₹1,008 crore collected on imported goods.
In FY24, the Centre and states reported gross GST collection of ₹20.18 trillion for the first time, showing an 11.7% increase compared to the collections in FY23. This growth rate is higher than the 9.1% nominal Gross Domestic Product (GDP) growth projected for FY24 by the statistics ministry, reflecting the buoyancy in GST collections.
The statistics ministry had also said in its second advance estimate of GDP that net taxes on products were expected to grow 15.5% in FY24, faster than 10.6% in the year before.
Finance ministry data also showed that the central government settled ₹50,307 crore to CGST and ₹41,600 crore to SGST from the IGST collected. This translates to a total revenue of ₹94,153 crore for CGST and ₹95,138 crore for SGST for April, 2024 after regular settlement.