India's Gross Goods and Services Tax (GST) collections reached a record high in April, hitting Rs 2.10 lakh crore, according to a statement from the Finance Ministry on Wednesday.
This figure represents a significant 12.4% increase compared to the same period last year when GST collections stood at Rs 1.87 lakh crore.
April typically sees the highest collection of GST in a year, as evidenced by last year's figures. Analysts anticipate that collections in the coming months will hover around the 1.7-2 lakh crore mark, with an expected uptick as the nation enters the festive season following the rainy season, as stated by Shravan Shetty, Managing Director at Primus Partners.
The growth in GST collections was primarily driven by a 13.4% increase in domestic transactions and an 8.3% rise in imports, according to the Finance Ministry.
After accounting for refunds, the net GST revenue for April 2024 stands at Rs 1.92 lakh crore, indicating a robust 17.1% growth compared to the same period last year.
The breakdown of the GST revenue includes Rs 43,846 crore under Central Goods and Services Tax (CGST) and Rs 53,538 crore under State Goods and Services Tax (SGST).
The Integrated Goods and Services Tax (IGST) amounted to Rs 99,623 crore, with Rs 37,826 crore collected on imported goods. Additionally, cess totaled Rs 13,260 crore, including Rs 1,008 crore from imported goods.
During April, the central government allocated Rs 50,307 crore to CGST and Rs 41,600 crore to SGST from the IGST collected, resulting in total revenue of Rs 94,153 crore for CGST and Rs 95,138 crore for SGST.
Finance Ministry officials had previously anticipated GST collections to exceed the Rs 2 lakh crore mark for April.
The average GST collection in the financial year 2023-24 was Rs 1.68 lakh crore, surpassing the Rs 1.51 lakh crore collected in the financial year 2022-23.
Looking ahead, analysts like Shetty emphasize the importance of factors such as the current heatwave's impact on manufacturing and services output and the upcoming monsoon's effect on the agricultural and rural economy, which will influence GDP growth and GST collections in the second half of the year.
