After accounting for refunds, the net GST revenue for April stood at Rs 1.92 trillion, up 15.5% on year.
India’s gross goods and services tax (GST) collections rose 12.4% on year to hit a record high of Rs 2.1 trillion in April, due to a variety of factors, including streamlining of accounts by businesses for FY24, electoral expenses by political parties and a modest recovery in rural consumption. Previously, the highest-ever GST collection figure stood at Rs 1.87 lakh crore in April 2023.
According to data released by the finance ministry on Wednesday, GST collections during April (mostly for March transactions) were driven by a stronger increase in domestic sales (up 13.4%) than imports (up 8.3%). This too cements the notion that consumption, which has remained subdued and skewed towards premium articles, may now have a tendency to be more broad-based. But this, according to economists, would still need to be borne out by other high-frequency data.
After accounting for refunds, the net GST revenue for April stood at Rs 1.92 trillion, up 15.5% on year.
Finance minister Nirmala Sitharaman posted on X: “GST collection crosses Rs 2-trillion benchmark, thanks to the strong momentum in the economy and efficient tax collections.”
The previous highest gross GST mop-up was recorded in April 2023, at Rs 1.87 trillion.
Experts say that while some part of the increased collections are attributable to the financial year end upswing, it is also reflective of the significant improvements in GST compliance by businesses. “The relentless focus on GST audits by both central and state GST authorities together with the periodic drives to stamp out evasion has led to a large increase in the GST compliance focus of business across the country,” said MS Mani, partner, Deloitte India.
Of the total collections – central GST mop-up stood at Rs 43,846 crore, state GST mop-up at Rs 53,538 crore, integrated GST at Rs 99,623 crore (includes Rs 37,826 crore collected on imported goods) and cess collections at Rs 13,260 crore.
The Centre settled Rs 50,307 crore to CGST and Rs 41,600 crore to SGST from IGST collected in April. Post settlement, the total CGST collections stood at Rs 94,153 crore and SGST collections at Rs 95,138 crore.
The minister mentioned that the collective IGST settlement of Rs 91,907 crore in April is Rs 4,413 crore more than the actual net IGST collections of Rs 87,494 crore and stands settled by the central government. “There are no dues pending on account of IGST settlement to the states,” she said on X.
Sanjay Chhabria, senior director, Indirect Tax at Nexdigm, said, “The significant rise in domestic transactions (reflected in April collections) can be attributed to consumer spending being focused on beating the summer heat, with purchases like air conditioners, beverages, as well as increased travel during the long vacations from schools and colleges.”
Source:financialexpress.com