In April 2024, Goods and Services Tax (GST) collections soared to a new high of ?2.10 lakh crore, marking a substantial 12.4% increase compared to the previous year. This milestone, announced by the finance ministry, is credited to a robust economic landscape, heightened domestic transactions, and amplified imports.
Finance Minister Nirmala Sitharaman applauded tax officers for their efforts in achieving this feat, highlighting the momentum in the economy and efficient tax collection processes. Experts noted that this surge in GST revenue indicates a buoyant economy, increased self-compliance among businesses, effective audit and scrutiny practices, and enforcement measures by tax authorities.
The breakdown of April 2024's GST revenue includes ?43,846 crore under Central GST (CGST), ?53,538 crore under State GST (SGST), and ?99,623 crore under Integrated GST (IGST), which includes ?37,826 crore from levies on imported goods. Cess collections totaled ?13,260 crore, with ?1,008 crore from imported goods.
After adjusting for refunds, the net GST revenue for April 2024 amounted to ?1.92 lakh crore, marking a 15.5% growth compared to the previous year. The settlement of IGST collections resulted in ?50,307 crore toward CGST and ?41,600 crore toward SGST.
This significant increase in GST collections has created a platform for anticipatory reforms under "GST 2.0," according to Deloitte India Partner Mahesh Jaising. PwC India Partner Pratik Jain echoed this sentiment, anticipating accelerated growth with forthcoming GST reforms under the new government.
The GST revenue surge has also prompted discussions on rate rationalization and the potential inclusion of products like aviation turbine fuel (ATF) and natural gas under GST. EY tax Partner Saurabh Agarwal emphasized the resilience of the GST system amid evolving economic landscapes, attributing the growth to stringent measures against non-compliance and fake invoicing.
MS Mani from Deloitte India noted widespread increases in GST collections across major producing and consuming states, indicating broad-based economic growth. Vivek Jalan from Tax Connect Advisory Services LLP highlighted the steady growth of GST revenues since its inception in 2017, averaging around 13% annually.
Sanjay Chhabria, Senior Director at Nexdigm, attributed the surge in domestic transactions to seasonal factors like increased consumer spending on products such as air conditioners and beverages, as well as heightened travel during extended school vacations.