In February 2024, GST collections surged by 12.5% to reach ₹1.68 lakh crore compared to the same period last year. This growth was driven by an uptick in both domestic sales and imports, contributing to the robust revenue figures.
According to a statement from the finance ministry, the gross Goods and Services Tax (GST) revenue collected for February 2024 reached ₹1,68,337 crore, marking a significant increase of 12.5% compared to the same month in 2023. This growth was primarily fueled by a 13.9% rise in GST from domestic transactions and an 8.5% increase in GST from the import of goods.
Additionally, the cumulative gross GST collection for the period of April to February in the current fiscal year amounted to ₹18.40 lakh crore, reflecting a notable 11.7% year-on-year increase.
In the current fiscal year, the average monthly GST collections stood at ₹1.67 lakh crore, which is notably higher than the ₹1.5 lakh crore recorded in the previous fiscal year.
For February 2024, the GST revenue net of refunds amounted to ₹1.51 lakh crore, reflecting a significant growth of 13.6% compared to February 2023.
In February, the central government disbursed ₹41,856 crore to Central GST and ₹35,953 crore to State GST from the Integrated GST collected. This resulted in a total revenue of ₹73,641 crore for CGST and ₹75,569 crore for SGST after the customary settlement process.
The highest-ever GST collection was recorded at ₹1.87 lakh crore in April 2023, followed by ₹1.74 lakh crore in January 2024, and ₹1.72 lakh crore in October 2023. However, in February 2024, the collections amounted to ₹1.68 lakh crore, marking the fourth-highest monthly collections to date.
According to M S Mani, Partner at Deloitte India, the impressive GST collection is a reflection of the broad-based increase in consumption across various sectors. This growth comes on the heels of robust GDP numbers for the third quarter, indicating positive momentum in the economy.
According to Mani, almost all major states have witnessed a remarkable increase in GST collections ranging from 8 to 21 percent. This indicates that consumption growth is widespread across states, highlighting the nature of GST as a destination-based consumption tax.
Abhishek Jain, Partner and National Head of Indirect Tax at KPMG in India, emphasized that the GDP growth and GST revenue figures collectively underscore the strength of the Indian economy, with the domestic consumption story remaining robust.
Parag Mehta, Partner of Indirect Tax at N.A. Shah Associates, noted that the current collection is indicative of the Indian economy heading towards an all-time high. Mehta attributed this success to the stabilization of GST, strict compliance by traders who engage only with registered and law-compliant vendors, and the vigilant oversight by authorities. Additionally, the seamless sharing of information between various government departments has ensured effective control and stringent action against tax evaders, according to Mehta.
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