The notable increase in Goods and Services Tax (GST) collections, which rose by 11.5% year-on-year to reach Rs 1.78 lakh crore in March 2024, marks the second-highest collection ever recorded. This growth was primarily propelled by a significant uptick in GST collection from domestic transactions, showing a robust 17.6% increase. After accounting for refunds, the net GST revenue for March 2024 stood at Rs 1.65 lakh crore, indicating a growth of 18.4% compared to the same period last year.
Comparatively, GST collections in March 2023 amounted to Rs 1.6 lakh crore, while in April 2023, the government collected Rs 1.87 lakh crore through GST. Throughout the fiscal year 2023/24, which concluded on March 31, the average gross GST collection stood at Rs 1.68 lakh crore, showing a notable increase from Rs 1.5 lakh crore in the previous fiscal year.
The government's gross GST collection for the fiscal year 2023/24 totaled approximately Rs 20.1 lakh crore, marking a significant 12% increase from the previous year. Ankur Gupta, Practice Leader Indirect Tax at SW India, noted that surpassing the INR 20 lakh crore mark for GST collections is a significant milestone for the tax ecosystem in India. This achievement reflects not only economic activities but also the efficiency of tax administration and taxpayer compliance.
Gupta also highlighted the positive indication of economic diversification, with contributions from states beyond the traditionally dominant ones such as Maharashtra, Gujarat, Karnataka, and Tamil Nadu. This diversification suggests a broader spread of economic activities across the country, driven by initiatives like Make in India and the Production-Linked Incentive (PLI) scheme.
Overall, the surge in GST collections underscores the country's robust economic growth, providing a strong foundation for the government to fulfill its developmental objectives and priorities.
