Gross GST collection in April shoots past Rs 2 trn to record high | Economy & Policy News

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Gross GST collection in April shoots past Rs 2 trn to record high | Economy & Policy News

For the first time, gross goods and services tax (GST) collection (prior to refunds) crossed the Rs 2 trillion mark, reaching a record Rs 2.1 trillion in April. This represented year-on-year (Y-o-Y) growth of 12.4 per cent.


Net GST receipts (after refunds) rose 17.1 per cent Y-o-Y to Rs 1.92 trillion rupees in April, the finance ministry said in a statement on Wednesday. Comparable data of net GST mop-up is available for only two more months — February and March — both of which showed much lower revenues than in April.


GST collections are typically the highest in April for any financial year. It will be interesting to see how many more months will clock more than Rs 2 trillion in gross GST collection in the current financial year.

The surge in GST collection was primarily driven by domestic activities, revenue from which increased 13.4 per cent Y-o-Y in April. Meanwhile, GST via imports rose by 8.3 per cent. However, the integrated GST (IGST) on imports saw a moderate decline of around 2 per cent, falling to Rs 37,826 crore in April, compared to Rs 38,593 crore a year ago. The cess on imports fetched 2.4 per cent higher revenue, at Rs 1,008 crore versus Rs 984 crore a year ago.


After the settlement of IGST collection, central GST (CGST) mop-up rose by 27.8 per cent Y-o-Y to Rs 94,153 crore in April, while state GST (SGST) revenue grew 25.9 per cent to Rs 95,138 crore. All states and Union territories — with the exception of the UTs of Jammu and Kashmir, Lakshadweep, and Andaman and Nicobar Islands, and the northeastern states of Sikkim, Nagaland, and Meghalaya — witnessed a rise in GST collection in April on a Y-o-Y basis.


Some experts attributed the robust GST collection in April to a rise in consumer demand for products to combat the scorching heat and brisk travel due to school and college vacations. “The significant rise in domestic transactions can be attributed to consumer spending being focused on beating the summer heat with purchases like air conditioners and beverages, as well as increased travel during the long vacations from schools and colleges,” said Sanjay Chhabria, a senior director at Nexdigm.


Others attributed it to the administrative measures by the GST authorities. “The concerted efforts of GST officers, including zero tolerance for non-filers, coupled with rigorous measures to combat fake invoicing and registrations, have significantly bolstered GST collections in the State’s coffers,” said Saurabh Agarwal, a tax partner at EY.


Experts believe that rising GST revenue should prompt the government to reform the tax system. “The GST growth rate of 17.1 per cent in April is almost double the 9.1 per cent growth in GDP at current prices (during 2023-24)… This has set the stage for pursuing forward-thinking reforms under GST 2.0,” said Mahesh Jaising, partner at Deloitte India.

First Published: May 01 2024 | 5:01 PM IST

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