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  Business   Economy  02 May 2024  India's GST Collections Soar, Cross Rs 2-Lakh Crore Mark

India's GST Collections Soar, Cross Rs 2-Lakh Crore Mark

THE ASIAN AGE. | MADHUSUDAN SAHOO
Published : May 2, 2024, 3:03 am IST
Updated : May 2, 2024, 3:03 am IST

The government said that the gross GST mop-up stood at Rs 2.1 lakh crore, representing a growth of 12.4 percent on year-on-year basis

 The GST revenue, which is accounted for as taxes on goods sold and services rendered, was over Rs 1.78 lakh crore last month, while it was `1.87 lakh crore in April 2023.
  The GST revenue, which is accounted for as taxes on goods sold and services rendered, was over Rs 1.78 lakh crore last month, while it was `1.87 lakh crore in April 2023.

New Delhi: India’s gross goods and services tax (GST) collections hit a record high in April 2024 and crossed Rs 2-lakh crore mark as well.

The government on Wednesday said that the gross GST mop-up stood at Rs 2.1 lakh crore, representing a growth of 12.4 percent on year-on-year basis.

After accounting for refunds, the net GST revenue for April also stood at Rs 1.92 lakh crore, which is a growth of 15.5 per cent, compared to the same period last year, according to the finance ministry.

The ministry said the rise in tax collections is mainly driven by the robust growth in domestic transactions and imports. “The GST collections hit a record high in April 2024 at Rs 2.1 lakh crore. This represents a 12.4 per cent year-on-year growth, driven by an increase in domestic transactions (up 13.4 per cent) and imports (up 8.3 per cent),” the ministry said.

“The GST collection crosses the Rs 2 lakh crore benchmark, thanks to the strong momentum in the efforts of the revenue department and the Central Board of Indirect Taxes & Customs,” the finance minister Nirmala Sitharaman posted on social media platform X.

 The GST revenue, which is accounted for as taxes on goods sold and services rendered, was over Rs 1.78 lakh crore last month, while it was Rs 1.87 lakh crore in April 2023.

“In April this year, the mop-up under Central GST (CGST) pool stood at Rs 43,846 crore, while State GST (SGST) collection reached Rs 53,538 crore and Integrated GST (IGST) Rs 99,623 crore, including Rs 37,826 crore collected through levies on imported goods. The total Cess collection was registered at Rs 13,260 crore, including Rs 1,008 crore collected on imported goods,” the ministry said.

The ministry further said that the central government settled Rs 50,307 crore to CGST and Rs 41,600 crore to SGST from the IGST collection. This translates to a total revenue of Rs 94,153 crore for CGST and Rs 95,138 crore for SGST in April 2024 after regular settlement. “There are no dues pending on account of IGST settlement to the states,” the finance minister said.
“The Indian economy is on a fast track to formalisation and businesses are fast becoming organised and are coming into the mainstream,” said Vivek Jalan, partner at Tax Connect Advisory Services LLP.

Deloitte India Partner Mahesh Jaising also said that the consistent buoyancy in GST collections has set the stage for pursuing forward-thinking reforms under GST 2.0.

PwC India Partner Pratik Jain said with the next wave of GST reforms expected after the formation of the new government.

Tags: goods and service tax
Location: India, Delhi