Wednesday, February 28, 2024

    Record-breaking GST Collections in April Followed by Steady Growth in May and June


    New Delhi, 2nd July 2023: The Goods and Services Tax (GST) collections in June 2023 witnessed a remarkable increase of 12 percent, surpassing Rs 1.61 lakh crore, according to a statement by the Finance Ministry on Saturday. This marks the fourth time since the implementation of the indirect tax system on July 1, 2017, that gross GST collection has exceeded Rs 1.60 lakh crore.

    During the first quarter (April-June) of the fiscal year 2023-24, the average GST revenues were as follows: approximately Rs 1.10 lakh crore in 2021-22, Rs 1.51 lakh crore in 2022-23, and Rs 1.69 lakh crore in 2023-24.

    Breaking down the GST revenue for June 2023, the Finance Ministry provided the following figures: Central GST accounted for Rs 31,013 crore, State GST for Rs 38,292 crore, Integrated GST for Rs 80,292 crore (including Rs 39,035 crore collected on import of goods), and cess for Rs 11,900 crore (including Rs 1,028 crore collected on import of goods).

    Compared to the same month last year, the June 2023 revenues showed a 12 percent increase. Furthermore, the revenues from domestic transactions, including the import of services, witnessed an 18 percent growth compared to the corresponding period last year.

    In April, the GST revenues reached a record high of Rs 1.87 lakh crore, while in May, they stood at Rs 1.57 lakh crore. The steady growth in GST collections over the past three months reflects the resilience and effectiveness of the tax system.

    The Finance Ministry’s statement highlights the positive trajectory of GST revenues and indicates a robust economic recovery. These record-breaking collections not only demonstrate the successful implementation of the GST framework but also indicate increased compliance among taxpayers.

    The steady growth in GST collections is an encouraging sign for the economy, signaling a revival in business activities and consumer spending. It also reflects the collective efforts of the government and taxpayers in adapting to the new tax regime and ensuring its smooth functioning.

    The Finance Ministry remains optimistic about the future prospects of GST collections and is committed to further streamlining the tax system, addressing any challenges, and fostering economic growth.

    The record-breaking GST collections in April, followed by the consistent growth in May and June, provide a positive outlook for the country’s fiscal health. As the economy continues to recover from the impact of the pandemic, the robust GST collections serve as a testament to the resilience and strength of the Indian economy.

    Neha Raj
    Neha uses his broad range of knowledge to help explain the latest gadgets and if they’re a must-buy or a fad fueled by hype. Though her specialty is writing about everything going on in the world of virtual reality and augmented reality.



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