FM: GST record due to efficiency, uptick in economy

NEW DELHI: Finance Minister Nirmala Sitharaman on Wednesday said the GST collection breached the Rs 2 lakh crore milestone on the back of strong economic momentum and efficient tax realisation.

Goods and Services Tax (GST), which subsumed over a dozen local taxes, was rolled out on July 1, 2017. Currently, there are 1.45 crore registered taxpayers on the GST system. Sitharaman also said, “there are no dues pending on account of IGST (Integrated GST) settlement to the states.”

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. In April this year, the mop-up under Central GST (CGST) pool stood at Rs 43,846 crore, while State GST (SGST) collection reached Rs 53,538 crore and Integrated GST (IGST) Rs 99,623 crore, including Rs 37,826 crore collected through levies on imported goods.

The total cess collection was Rs 13,260 crore, including Rs 1,008 crore collected on imported goods. 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.

After accounting for refunds, the net GST revenue for April 2024 stood at Rs 1.92 lakh crore, a 15.5 per cent growth compared to the same period last year.

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