In June, India’s gross Goods and Services Tax GST collections saw a year-on-year increase of 7.7%, reaching ₹1.74 lakh crore for May sales. This growth rate is the slowest in three years, with the previous low recorded in June 2021.
Coinciding with the seventh anniversary of the GST rollout, the government announced it will stop issuing official monthly GST collection releases, which were typically shared on the first day of each month. The government will no longer provide statements regarding GST collections, sources said.
The customary GST collection release included a state-wise revenue breakdown, offering insights into economic and consumption activities. It also detailed the collection of Central GST (CGST), state GST (SGST), and compensation cess from imports and domestic sales.
For the current financial year (April-June), gross GST collections totaled ₹5.57 lakh crore. In May 2024, the government collected ₹1.73 lakh crore, while June 2023 saw collections of ₹1.61 lakh crore. The Integrated GST (IGST) worth ₹39,586 crore was allocated towards CGST and ₹33,548 crore towards SGST. The highest GST collection of ₹2.1 lakh crore was recorded in April.
On social media platform X, the Finance Ministry celebrated seven years of GST, highlighting its positive impact on household goods taxes. ‘With reduced tax rates on household goods after GST implementation, #7yearsofGST has brought happiness and relief to every home through lower GST on household appliances and mobile phones,’ the Ministry posted.
The GST taxpayer base grew from 1.05 crore in April 2018 to 1.46 crore in April 2024. Comparative charts provided by the Ministry showed how GST implementation has reduced the cost of food items and mass consumption goods, enhancing the ease of living.
As the anticipation builds for Union Budget 2024-25, salaried taxpayers are focusing on key expectations that could alleviate their tax burden and enhance financial planning. One of the foremost expectations revolves around Section 80C deductions, with experts forecasting an increase from the current ₹1.5 lakh to ₹2 lakh per financial year. This adjustment would provide much-needed relief by incentivizing investments in avenues such as provident funds, insurance premiums, and equity-linked savings schemes.
Furthermore, there’s optimism surrounding a potential increase in the standard deduction limit for salaried individuals, aimed at easing taxable income burdens. The recent introduction of a ₹50,000 standard deduction in the previous budget has set a precedent for further adjustments that could benefit taxpayers under the new tax regime.
As salaried taxpayers await the unveiling of Union Budget 2024-25, navigating the intricacies of tax reforms and potential benefits requires expert guidance. Vakilsearch offers specialised tax advisory services tailored to help individuals and businesses stay informed and compliant with evolving tax laws. Whether it’s maximising deductions under Section 80C, understanding changes in standard deduction limits, or optimising tax planning strategies, our expert team stands ready to assist. Partner with Vakilsearch to ensure you make informed financial decisions amidst the changing tax landscape in India.
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