HomeWhat's TrendingIndia's Economy Thrives as GST Collection Reaches New Heights

India’s Economy Thrives as GST Collection Reaches New Heights

GST collection surged by 12.5% to reach ₹1.68 lakh crore in February 2024, marking the fourth-highest collection since its inception. This growth was primarily driven by increased domestic sales and imports.

According to a statement from the finance ministry, the gross Goods and Services Tax (GST) revenue for February 2024 amounted to ₹1,68,337 crore, indicating a robust increase of 12.5% compared to the same period in 2023. The surge was fueled by a 13.9% rise in GST from domestic transactions and an 8.5% increase in GST from imported goods.

For the April-February period of the current fiscal year, the gross GST collection stood at ₹18.40 lakh crore, showing an 11.7% year-on-year increase.

The average monthly collections during this fiscal year were ₹1.67 lakh crore, surpassing the ₹1.5 lakh crore recorded in the previous fiscal year.

The net GST revenue, after refunds, for February 2024 amounted to ₹1.51 lakh crore, indicating a growth of 13.6% over February 2023.

The central government disbursed ₹41,856 crore to Central GST and ₹35,953 crore to State GST from the Integrated GST collected, resulting in total revenues of ₹73,641 crore for CGST and ₹75,569 crore for SGST after regular settlements in February.

February 2024 saw the fourth-highest monthly collections of ₹1.68 lakh crore, following the record-high collection of ₹1.87 lakh crore in April 2023, followed by ₹1.74 lakh crore in January 2024, and ₹1.72 lakh crore in October 2023.

Deloitte India Partner M S Mani noted that the impressive GST collection and robust GDP numbers for the third quarter reflect broad-based consumption increases across sectors. Similarly, KPMG in India Partner and National Head of Indirect Tax, Abhishek Jain, highlighted the strong performance of the Indian economy and domestic consumption story.

Parag Mehta, Partner, Indirect Tax at N.A. Shah Associates emphasised that the collection is indicative of the Indian economy moving towards an all-time high, attributing it to GST stabilisation, strict compliance by traders, and vigilant authorities ensuring action against tax evaders through information sharing between government departments.

Vakilsearch experts see the robust GST collection as a sign of a thriving economy. They attribute the growth to various factors, including stricter compliance measures, and say that the high GST collection indicates a flourishing Indian economy. Vakilsearch offers comprehensive legal support for GST compliance and related matters.

Akash G Varadaraj