Year-end sales, compliance drive GST collection up 12%

Apart from these factors, the rate revisions undertaken in July last year have also supported the GST buoyancy over the last few months. Around 3-4 per cent of the monthly gross GST collections, as per internal estimates, are learnt to be on account of the GST rate revisions in July 2022, with the favourable base effect expected to normalise from July this year. The last record-high GST revenue was seen in April 2022 at Rs 1,67,540 crore.

“For the first time gross GST collection has crossed Rs 1.75 lakh crore mark. Total number of e-way bills generated in the month of March 2023 was 9.0 crore, which is 11% higher than 8.1 crore e-way bills generated in the month of February 2023,” the Finance Ministry statement said.

Commenting on the record GST revenue, Prime Minister Narendra Modi said it is “great news for the economy.” “Rising tax collection despite lower tax rates shows the success of how GST has increased integration and compliance,” he said in a tweet.

During April, the revenues from domestic transactions (including import of services) were 16 per cent higher than the corresponding period a year ago, the ministry said. The highest ever tax collection on a single day was seen on April 20, 2023 at Rs 68,228 crore paid through 9.8 lakh transactions. The highest single day payment last year on the same date was Rs 57,846 crore through 9.6 lakh transactions, the ministry said.

As per state-wise GST revenue data, which shows GST revenue collected (not accrued), 24 states/ UTs recorded a higher growth rate than the overall 11.6 per cent rise in GST collections. In percentage terms, Sikkim, Mizoram and Jammu & Kashmir were among the top-ranking states, while in absolute terms, the highest level of GST was collected in Maharashtra, followed by Karnataka and Tamil Nadu.

Going ahead, experts said with ease in inflation, GST revenue trend may see some moderation. “While collections have maintained a healthy 11-13% growth in the recent months, a normalising base and some cooling of inflation may moderate the pace of expansion slightly in the coming quarter, although it would remain in the high single digits,” Aditi Nayar, Chief Economist, ICRA said.

The GST Council, in its 47th meeting in June-end last year, recommended rate changes as part of the correction of inverted duty structure and withdrawal of certain exemptions for ‘pre-packaged and labelled’ retail packs, including food items such as lassi, puffed rice, wheat flour, but items sold loose or unlabeled continued to be exempt.

Abhishek Jain, Partner and National Head, Indirect Tax, KPMG in India, said, “The highest ever GST collection is aligned to expectations, specifically with the increased E-Way Bills generated during March and reconciliations linked to year-end activities. With continued growth in collections and the government’s bid to control evasion, the cheer for increased collections could continue.”

Out of the April GST revenue of Rs 1,87,035 crore, Central GST — the tax levied on intra-state supplies of goods and services by the Centre — was Rs 38,440 crore, State GST — the tax levied on intra-state supplies of goods and services by the states — was Rs 47,412 crore. Integrated GST — the tax levied on all inter-state supplies of goods and services — was Rs 89,158 crore (including Rs 34,972 crore collected on import of goods) and cess was Rs 12,025 crore (including Rs 901 crore collected on import of goods).

The government has settled Rs 45,864 crore to CGST and Rs 37,959 crore to SGST from IGST. The total revenue of Centre and the states in April 2023 after the settlement was Rs 84,304 crore for CGST and Rs 85,371 crore for the SGST.

© The Indian Express (P) Ltd