GST Collection Breaks Record; Crosses Rs 2 lakh Cr In April; ‘Strong Momentum’ Says Nirmala Sitharaman

Out of the IGST collection, Rs 50,307 crore was settled towards CGST and Rs 41,600 crore towards SGST. This translates to a total revenue of Rs 94,153 crore for CGST and Rs 95,138 crore for SGST in April 2024 after regular settlement.

Goods and Services Tax collections grew 12.4 per cent to a record high of Rs 2.10 lakh crore in April, aided by strong economic momentum and increased domestic transactions and imports, the finance ministry said on Wednesday.

The GST collections have breached the Rs 2 lakh crore mark for the first time in April this year, it said in a statement.

“The Gross Goods and Services Tax (GST) collections hit a record high in April 2024 at Rs 2.10 lakh crore. This represents a significant 12.4 per cent year-on-year growth, driven by a strong increase in domestic transactions (up 13.4 per cent) and imports (up 8.3 per cent),” the ministry said.

The GST collection was more than Rs 1.78 lakh crore last month and was at Rs 1.87 lakh crore in April 2023.

Nirmala Sitharaman On Record Break GST Collection

Finance Minister Nirmala Sitharaman in a post on X (formerly Twitter) lauded the efforts of tax officers for achieving the milestone.

“GST collection crosses Rs 2 lakh crore benchmark, thanks to the strong momentum in the economy and efficient tax collections,” she said.

“There are no dues pending on account of IGST settlement to the states,” Nirmala Sitharaman said in an X post.

Experts On GST Collection

Tax experts said robust GST revenues in April reflect a buoyant economy, self-compliance by businesses, timely audit and scrutiny, besides enforcement measures taken by the department. The increased collections also raise expectations of ushering in the next wave of GST reforms.

Deloitte India Partner Mahesh Jaising said the consistent buoyancy in GST collections has set the stage for pursuing forward-thinking reforms under GST 2.0.

PwC India Partner Pratik Jain said that with the next wave of GST reforms expected after the formation of the new government, the growth (in GST collections) may be further accelerated.

It may also enable the government to make bolder decisions like rate rationalisation or bringing other products, such as ATF and natural gas, under the GST ambit.

According to EY tax Partner Saurabh Agarwal, the GST collection underscores the steadfast resilience of the tax system amid evolving economic landscapes.

“The concerted efforts of the GST officials, including zero tolerance for non-filers, coupled with rigorous measures to combat fake invoicing and the registrations have significantly bolstered GST collections in the states’ coffers,” Agarwal said.

Deloitte India Partner MS Mani said significant GST collection increases have been observed across all major producing and consuming states, indicating that it is widespread and not restricted to a few industrial pockets.

Tax Connect Advisory Services LLP Partner Vivek Jalan said from July 2017, when GST started with an average monthly revenue of around Rs 0.9 lakh crore, to April 2024, when it grossed Rs 2.1 lakh crore, GST revenues have witnessed an approximate growth of 13 per cent per annum on average.

(With Inputs From PTI)