India’s Gross Goods and Services Tax (GST) collections surged to a historic high in April, reaching Rs 2.10 lakh crore, according to a statement from the Finance Ministry on Wednesday.
This figure represents a notable 12.4% increase compared to the same period last year, when GST collections stood at Rs 1.87 lakh crore.
The latest milestone eclipses the previous record set in April 2023, underscoring the sustained growth trajectory of GST revenues. Shravan Shetty, Managing Director at Primus Partners, attributed the robust performance to the typical surge in GST collections during the month of April, a trend likely to continue in the upcoming months, particularly with the onset of the festive season post the monsoon period.
The growth in GST collections was propelled by a 13.4% uptick in domestic transactions and an 8.3% rise in imports, as reported by the ministry. After accounting for refunds, the net GST revenue for April 2024 stands at Rs 1.92 lakh crore, marking a substantial 17.1% growth compared to the corresponding period last year.
Breakdown of the GST revenue distribution revealed that the Central Goods and Services Tax (CGST) amounted to Rs 43,846 crore, while the State Goods and Services Tax (SGST) totaled Rs 53,538 crore. The Integrated Goods and Services Tax (IGST) reached Rs 99,623 crore, with Rs 37,826 crore collected on imported goods. Cess collections amounted to Rs 13,260 crore, including Rs 1,008 crore from imported goods.
During April, the central government allocated Rs 50,307 crore to CGST and Rs 41,600 crore to SGST from the IGST collected, resulting in total revenue of Rs 94,153 crore for CGST and Rs 95,138 crore for SGST.
Finance Ministry officials had previously anticipated GST collections to surpass the Rs 2 lakh crore mark for April. The strong performance in GST collections in the fiscal year 2023-24, with an average collection of Rs 1.68 lakh crore, indicates a positive momentum for India’s tax revenue.
Looking ahead, Shravan Shetty highlighted the impact of the ongoing heat wave on manufacturing and services output, along with the forthcoming monsoon season’s influence on agricultural and rural economy, which would ultimately shape GDP growth and GST collections in the second half of the year.
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