In April, India reached a historic milestone in its GST collections, with a total of Rs 2.10 lakh crore being amassed. This remarkable achievement can be attributed to a significant rise in domestic transactions, which surged by 13.4% year-on-year, along with improved compliance due to anti-evasion measures implemented by authorities.
The Highest Ever GST Collection Since Implementation
This latest figure marks the highest level of GST collections since the inception of the indirect tax reform nearly seven years ago in July 2017. It also represents the first time that the overall GST mop-up has surpassed the Rs 2 lakh crore mark. Previously, the highest collection was recorded in April 2023 at Rs 1.87 lakh crore, reflecting year-end sales of March 2023.
Commendation by Finance Minister
Union Finance Minister Nirmala Sitharaman lauded the achievement, attributing it to the robust momentum in the economy and efficient tax collections. She highlighted that there are no pending dues to states regarding the settlement of Integrated GST (IGST), which is the tax levied on all inter-state supplies of goods and services.
Key Figures and Analysis
After accounting for refunds, the net GST revenue in April stood at Rs 1.92 lakh crore, marking a substantial increase of 15.5% from the corresponding period last year. The surge in gross GST collections was driven by a strong uptick in domestic transactions and imports, reflecting the year-end momentum and enhanced audit and investigation efforts by GST authorities.
State-Wise Performance
Data for April revealed that out of 38 states/Union territories, 19 recorded higher growth in GST collections than the national average of 12.4%. Maharashtra, Karnataka, Gujarat, Uttar Pradesh, Tamil Nadu, and Haryana were among the top-performing states in terms of absolute collection figures.
Insights from Tax Experts
Tax experts attributed the record-high collection to economic activity, enhanced compliance, and rigorous audits by GST authorities. They emphasized the widespread increase in GST collections across major producing and consuming states, indicating a broad-based improvement in compliance and revenue generation.
Anticipated Future Outlook
Looking ahead, experts anticipate GST collections to remain in the range of Rs 1.7-2 lakh crore, with potential fluctuations based on factors such as consumption patterns, regulatory changes, and global economic dynamics. While celebrating the achievement, cautious optimism is advised, with a focus on sustaining the growth trajectory in the coming months.
In Conclusion
The record-high GST collection in April reflects the resilience of India’s economy and the effectiveness of tax reforms and compliance measures. It underscores the importance of continued efforts to enhance tax administration and foster economic growth in the post-pandemic era.
