Adieu to FY24 with peak GST mop-up
Revenue crosses ₹20 tn, mirrors growth, collection efficiency
India wrapped up financial year 2023-24 with the highest goods and services tax (GST) collections on record, reflecting robust economic growth and administrative efficiency. The last month of the fiscal also saw the second highest GST collections since the indirect tax regime debuted in July 2017.
In FY24, the Centre and state governments clocked gross GST collections of ₹20.18 trillion, an 11.7% increase from the previous year, the Union finance ministry said on Monday, terming the performance “strong” and “consistent”. In March, the collections came in at ₹1.78 trillion, up 11.5% from a year earlier.
The increase in GST collections in FY24 at 11.7% is higher than the 9.1% nominal gross domestic product (GDP) growth projected for FY24 by the statistics ministry, reflecting the buoyancy in GST collections. The statistics ministry had said in its second advance estimate of GDP that net tax collection on products may grow 15.5% in FY24, faster than 10.6% in the year before.
TAX BOUNTY
THE average monthly GST collection in FY24 stood at ₹1.68 trillion
NIRMALA SITHARAMAN
AFTER adjusting for refunds, GST revenue for FY24 was ₹18.01 tn
Prospects for high GST collections remain promising in the forthcoming quarter, too, particularly in light of the upcoming general elections, said Saurabh Agarwal, a tax partner at EY India.
“India’s economic growth performance will keep supporting GST revenue collection growth in the coming quarters. There is also
INDIA’S economy is estimated to grow at 7.6% this fiscal year the potential for further widening of the tax base over the next two to three years on account of the administrative steps being taken. At present, there are about 14 million registered taxpayers,” Agarwal added.
Monday’s data showed the Cen