Highest Monthly Collection Since Implementation of GST
The highest monthly GST collection since its implementation in India is Rs 2.10 lakh crore, achieved in April 2024. This marks a 12.4% growth on a year-on-year basis. The previous highest-ever GST collection figure stood at Rs 1.87 lakh crore in April 2023.
The growth was driven by a 13.4% growth in domestic transactions and an 8.3% growth in imports. After accounting for refunds, the net GST revenue for April 2024 stands at Rs 1.92 lakh crore, reflecting an impressive 17.1% growth compared to the same period last year.
This significant increase in GST revenue is a testament to the country’s economic recovery and the government’s efforts to improve tax compliance. The average GST collection in FY24 was Rs 1.68 lakh crore, while it was Rs 1.51 lakh crore in FY23.
Breakdown of GST Collection in July
The total GST collection for July 2024 stands at Rs 1.82 lakh crore, with a growth rate of 10.3% year-on-year. Here’s a breakdown of the GST collection:
- Domestic Transactions: Rs 1.52 lakh crore, with a growth rate of 8.9% year-on-year.
- Imports: Rs 30,000 crore, with a growth rate of 14.2% year-on-year.
- Total Refunds: Rs 16,283 crore, with a decline of 19.4% year-on-year.
The gross GST revenue for the first four months of the current financial year stands at Rs 7.39 lakh crore, with a growth rate of 10.2% year-on-year.
The total GST collection for July 2023 includes:
- CGST (Central GST): Rs 74,155 crore
- SGST (State GST): Rs 92,021 crore
- IGST (Integrated GST): Rs 52,815 crore
- Cess: Rs 10,043 crore
Year-on-Year Comparison of GST Collection
The year-on-year comparison of GST collection shows a significant growth in the financial year 2023-24, with a total gross GST collection of Rs 20.18 lakh crore, exceeding Rs 20 lakh crore with a 11.7% growth.
In May 2024, the gross GST revenue stood at Rs 1.73 lakh crore, with a 10% year-on-year growth. The net GST revenue for May 2024 stood at Rs 1.44 lakh crore, reflecting a growth of 6.9% compared to the same period last year.
In April 2024, the gross GST revenue witnessed a record high of Rs 2.10 lakh crore, with a 12.4% year-on-year growth. The net GST revenue for April 2024 stood at Rs 1.92 lakh crore, 15.5% higher than the same period last year.
The gross GST collections in the current fiscal (FY25) till May 2024 stood at Rs 3.83 lakh crore, which is a 11.3% year-on-year growth, driven by a strong increase in domestic transactions (up 14.2%) and a marginal increase in imports (up 1.4%). After accounting for refunds, the net GST revenue in FY25 till May 2024 stood at Rs 3.36 lakh crore, recording a growth of 11.6% compared to the same period last year.
Compared to July 2022, the GST collection has increased by 10.4%, indicating a steady growth in the economy. This growth can be attributed to various factors, including:
- Improved Tax Compliance: The government’s efforts to improve tax compliance and reduce evasion have led to an increase in GST revenue.
- Economic Recovery: The Indian economy has shown signs of recovery, leading to an increase in business activity and subsequently, GST collection.
- Inflation: The moderate inflation rate has also contributed to the increase in GST revenue.
Sector-Wise Performance of GST Collection in July
The sector-wise performance of GST collection in July 2024 shows a mixed bag of results. Maharashtra posted the highest GST collection in absolute terms at Rs 26,064 crore, followed by Karnataka, Tamil Nadu, Gujarat, Uttar Pradesh, and Haryana.
On the other hand, Manipur posted a degrowth in July 2023. Mizoram recorded the highest year-on-year (Y-o-Y) rise of 47%, followed by Lakshadweep at 45%. Andaman and Nicobar Islands, Center Jurisdiction, Jammu and Kashmir, and Meghalaya also showed significant growth.
The state-wise SGST settled from IGST also showed varying performances, with Maharashtra, Uttar Pradesh, and Karnataka topping the list.
The GST collection has seen a significant increase across various sectors, including:
- Manufacturing: The manufacturing sector has seen a growth of 12% in GST collection, indicating an increase in production and sales.
- Services: The services sector has witnessed a growth of 10% in GST collection, driven by the growth in the IT and financial services sectors.
- E-commerce: The e-commerce sector has seen a significant growth of 15% in GST collection, driven by the increase in online shopping and digital payments.
Impact of GST Collection Surge on Indian Economy
The surge in GST collection has had a significant impact on the Indian economy. According to a Finance Ministry study, consumers have saved approximately 4% on monthly household expenses due to the changes brought about by GST. The implementation of GST has transformed the economy into a digital and standardized one, facilitating the seamless flow of information and availability of a common set of data to both the Centre and the States, making direct and indirect tax collections more effective.
The GST regime has simplified tax compliance and reduced cascading tax effects. GST rates have been significantly reduced or set to zero for various items, including mobile phones, refrigerators, and TVs up to 32 inches. The GST Council, chaired by the Union Finance Minister and comprising Finance Ministers of all States, continues to oversee the GST framework and address issues related to tax administration.
The surge in GST collection is a reflection of the ongoing benefits of the GST regime in simplifying the tax system and supporting economic growth. The data underscores a robust economic outlook, with GST revenues continuing to rise, owing to the number of registered taxpayers and improved compliance with more returns being filed. This is facilitated by the implementation of anti-tax evasion measures such as e-Way Bill, reverse charge mechanism, and the much-anticipated system of invoice matching.
The transportation and logistics sector is expected to have a long-term positive impact with consolidation of warehouses, which will help in improved load availability and drop in vehicle transit time. Overall, the impact of GST collection surge on the Indian economy has been positive, with macro-economic growth and digitalization in the tax system.
The surge in GST collection is expected to have a positive impact on the economy, including:
- Increased Government Revenue: The increased GST revenue will provide the government with more resources to invest in infrastructure development, social welfare programs, and other initiatives.
- Boost to Economic Growth: The growth in GST collection is expected to boost economic growth, create jobs, and increase consumer spending.
- Improved Tax Compliance: The increased GST revenue will also lead to improved tax compliance, reducing the burden of tax evasion on the economy.
Conclusion
The surge in GST collection to Rs 1.82 lakh crore in July is a positive sign for the Indian economy. The growth in GST revenue is expected to have a positive impact on the economy, including increased government revenue, boosted economic growth, and improved tax compliance. As the economy continues to recover, it is essential to maintain this momentum and ensure that the benefits of GST are shared by all stakeholders.
FAQ’S
- Q1: What is the total GST collection for July? A: The total GST collection for July is Rs 1.82 lakh crore.
- Q2: What is the percentage increase in GST collection compared to last year? A: The GST collection has surged by 10% compared to last year.
- Q3: What is the main reason for the surge in GST collection? A: The surge is attributed to improved compliance and anti-evasion measures.
- Q4: Which state has posted the highest GST collection in absolute terms? A: Maharashtra has posted the highest GST collection in absolute terms at Rs 26,064 crore.
- Q5: Which state has recorded the highest year-on-year (Y-o-Y) rise in GST collection A: Mizoram has recorded the highest Y-o-Y rise of 47% in GST collection.
