Goods and Services Tax (GST) collections in January surged by 10.40 per cent to exceed Rs 1.72 lakh crore, reflecting buoyant economic activity and setting the stage for the next phase of GST reforms.
This marks the second-highest monthly collection ever, with three months in the current fiscal year recording Rs 1.70 lakh crore or more in collections.
The finance ministry revealed that the gross GST revenue for January 2024 grew by 10.40 per cent year-on-year, reaching Rs 1,72,129 crore compared to Rs 1,55,922 crore in January 2023.
Cumulative gross GST collection from April 2023 to January 2024 witnessed an 11.60 per cent YoY growth, totaling Rs 16.69 lakh crore compared to Rs 14.96 lakh crore in the same period the previous year.
The highest-ever monthly GST collection was recorded in April 2023 at Rs 1.87 lakh crore. Experts attribute this growth to increased trade awareness, the resolution of pending show cause notices for 2017-18, and authorities utilising data analytics to curb evasion.
Deloitte India Partner MS Mani said that the collections provide headroom for the next stage of GST reforms and are aligned with positive macroeconomic indicators, including an IMF-upgraded growth forecast of 6.7 per cent for FY23-24. Analysts suggest that voluntary payments by businesses for FY 22-23 during annual returns and reconciliation statements in December could be a significant factor contributing to this growth.
The consistent rise in GST collections, almost doubling from an average of around 0.85 lakh crore in FY17-18 to approximately Rs 16.5 lakh crore in FY2023-25, indicates the stabilization of the significant tax reform in India's history.
(With PTI inputs)
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