India’s Goods and Services Tax (GST) collections reached an all-time high in April 2024, exceeding INR 2 Lac Cr. This is the highest level of GST collection recorded since July 2017 of the indirect tax regime. The previous highest level registered under GST was INR 1.87 Lac Cr in April 2023, reflecting year-end sales of March 2023.
Domestic and Import Transactions Propel Surge
The surge is primarily driven by a notable increase in domestic as well as import transactions soaring by 13.4% and 8.3% respectively. The dual boost underscores the resilience and vibrancy of India’s economic activities.
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Net GST Revenue Reaches INR 1.92 Lac Cr
After accounting for refunds, net GST revenue for April stood at an impressive INR 1.92 Lac Cr. This represents a significant increase of 17.1% compared to the same period last year, reflecting continued momentum in tax collection efforts.
Breakdown of Revenue Distribution
In April 2024, the Central Goods and Services Tax (CGST) collection went up to INR 43846 Cr, State Goods and Services Tax (SGST) went up to INR 53538 Cr and Integrated Goods and Services Tax (IGST) went up to INR 99623 Cr which includes INR 37826 Cr from imported goods; GST Compensation Cess went up to INR 13260 Cr with INR 1008 Cr from imported goods.
Implications and Outlook
Sustained high GST collections indicate a desirable outcome for India’s fiscal health, and they in turn suggest an upward trajectory for economic activity and consumption patterns. The low tax payment system and related measures to prevent tax evasion and money laundering have certainly helped to improve confidence between taxpayers and foreign investors.
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Future Prospects
As India continues to navigate through the challenges posed by the global economic landscape, the sustained growth in GST collections bodes well for the country’s economic resilience and stability.
