Tag: GST

In June 2024, India’s GST collections reached ₹1.74 lakh crore, marking a significant 7.7% increase compared to June 2023. This collection is the highest ever recorded since the introduction of GST. For the financial year so far (April-June 2024), the average GST collection stands at ₹1.86 lakh crore.

Key Points:

• June 2024 Collection: ₹1.74 lakh crore
• Year-on-Year Growth: 7.7%
• Average Collection for April-June 2024: ₹1.86 lakh crore
• Highest Collection Since GST Introduction

Recent Developments

The Ministry of Finance has decided to discontinue the practice of releasing detailed monthly GST collection data. This marks a change from the previous 74-month routine of issuing such detailed reports. The decision was reportedly influenced by public dissatisfaction over high GST collections, leading to concerns that the government was overtaxing citizens.

GST Revenue Breakdown

Although the detailed data for June 2024 is not fully available, approximate figures indicate:

• Central GST (CGST) from IGST: ₹39,600 crore
• State GST (SGST) from IGST: ₹33,548 crore

Collection Trends

Here’s a comparative look at GST collections for the last few months:

• April 2024: Record-high GST collection of ₹2.1 lakh crore.
• May 2024: ₹1.73 lakh crore.
• June 2024: ₹1.74 lakh crore.

Impact of Discontinued Data Releases

The decision to stop detailed monthly releases has sparked debate:

• Public Perception: The government faced criticism for high GST collections, with accusations of overtaxing citizens.
• Economic Analysis: Economists argue that the high GST collections are due to increased compliance and a broader tax base, rather than a higher tax rate.

Expert Opinions

Economists and tax experts suggest that while the public may misinterpret high GST collections as increased tax burdens, the growth reflects a robust economy and improved compliance. They also caution that discontinuing detailed data releases could hinder economic analysis and transparency.

GST Regime: 7th Anniversary

On the seventh anniversary of GST’s rollout, the Finance Ministry highlighted the system’s benefits:

• Increased Taxpayer Base: Grew to 14.6 million in April 2024 from 10.5 million in April 2018.
• Reduced Compliance Burden: Waiver of annual return filing for small taxpayers and fewer returns under the QRMP scheme.

June 2024’s GST collection reflects a strong economic performance, with collections continuing to exceed historical highs. Despite the government’s shift away from detailed monthly reports, the overall trend indicates a buoyant economy, driven by better compliance and a larger tax base.

The Goods and Services Tax (GST) collections for June 2023 reached ₹1,61,497 crore, an increase from ₹1,57,090 crore in May 2023. This amount is the second-highest monthly GST collection ever, only behind April 2023. June 2023 marks the fourth time since GST’s inception that collections have exceeded ₹1.6 lakh crore.

Key Figures

• Total GST Collected: ₹1,61,497 crore
• Central GST (CGST): ₹31,013 crore
• State GST (SGST): ₹38,292 crore
• Integrated GST (IGST): ₹80,292 crore (including ₹39,035 crore from imports)
• Cess Collections: ₹11,900 crore (including ₹1,028 crore from imports)

GST Collection Breakdown

The GST revenue is composed of CGST, SGST, IGST, and Cess, with detailed settlements as follows:

Government Settlements

The central government settled ₹36,224 crore to CGST and ₹30,269 crore to SGST from the IGST collections in June 2023. After these settlements, the revenue split between the Centre and states was:

Year-on-Year Growth

Compared to June 2022, the GST collections in June 2023 grew by 12%. For context, June 2022 collections were ₹1,44,616 crore. The year-on-year growth reflects a significant increase of 12% from the previous year’s collections.

Trends and Projections

June 2023 saw a rebound in GST collections following a dip in May 2023. The steady increase since April 2023 suggests an ongoing economic recovery. Notably, GST collections have exceeded ₹1.4 lakh crore for 16 consecutive months and ₹1.5 lakh crore seven times since GST’s introduction.

Monthly GST Collections Overview (₹ crore)

State-wise GST Collection Analysis

Among the states, Maharashtra led with the highest GST collection of ₹26,098 crore in June 2023, followed by Karnataka, Gujarat, Tamil Nadu, and Uttar Pradesh. Notably, Lakshadweep saw the most dramatic increase, with a staggering 3316% growth from June 2022.

SGST Settlements from IGST

The amount of SGST settled to various states from IGST in June 2023 shows significant variation, with Maharashtra, Uttar Pradesh, and Karnataka receiving the largest shares:

June 2023 witnessed a notable increase in GST collections, reflecting a strong economic performance and consistent recovery. With collections surpassing previous records and showing healthy year-on-year growth, the trend suggests a positive outlook for the fiscal year 2023-24.

The data provides a comprehensive view of GST performance across various states and sectors, underscoring the resilience and upward trajectory of the Indian economy.