New Delhi: A new benchmark has been set in India’s fiscal history as Gross Goods and Services Tax (GST) collections reached an all-time high in April 2024, with an impressive tally of Rs 2.10 lakh crore. This financial triumph showcases a robust 12.4% year-on-year growth which is attributed significantly to the upsurge in domestic transactions and imports, marking upswings of 13.4% and 8.3% respectively. After the necessary adjustments for refunds, the net GST revenue for April 2024 is reported at Rs 1.92 lakh crore. This net figure spells out a remarkable 15.5% growth from the revenues in the april of the preceding year, underlining the buoyant state of the Indian economy. The official release provides a detailed insight into this fiscal surge.
A comprehensive state-wise breakdown of the GST revenues during April 2024 exhibits the varied economic dynamics across the country. Notably, many regions have displayed significant growth, with Punjab, Haryana, Delhi, and Bihar amongst the top performers, all witnessing over a 20% increase in their GST collections compared to April 2023. The Union Territory of Chandigarh also posted an impressive 23% growth. On the contrary, some areas observed a decline, with Jammu and Kashmir, Sikkim, and Arunachal Pradesh seeing a drop in their GST revenues, attributable to different factors impacting those regions.
The meticulous compilation of April 2024’s GST receipts reveals that the Central Goods and Services Tax (CGST) stood at Rs 43,846 crore, and the State Goods and Services Tax (SGST) was noted at Rs 53,538 crore. The Integrated Goods and Services Tax (IGST) topped the charts with Rs 99,623 crore, which included an impressive Rs 37,826 crore accrued from imported goods. Additionally, the cess collected amounted to Rs 13,260 crore, of which Rs 1,008 crore came from imports.
Industry experts have weighed in on these developments, highlighting the underlying growth indicators and the contributing factors. Abhishek Jain, Partner & National Head, Indirect Tax, KPMG in India, recognizes the highest GST collection ever as a sign of a strong domestic economy. Jain posits the substantial growth in domestic transactional GST, which outpaces that from imports, as a clear reflection of the internal economic strength. Another dimension he alludes to is the role of GST audits and notices issued earlier in the year, setting the stage for the impressive collections in April.
The analysis of state-wise GST growth further illuminates the varying economic health across India’s diverse landscapes. States such as the economic powerhouse Maharashtra and the manufacturing hub Gujarat both recorded solid growth figures of 13%, whereas technology and service-oriented Karnataka showed a 9% increment. Intriguingly, the North Eastern state of Mizoram demonstrated an unprecedented 52% spike in GST collections, although from a smaller base, hinting at the blossoming economic activities in the region. The figures present an intricate tapestry of economic revival and expansion post the pandemic era.
The record-setting GST collection not only underscores the resilience of the Indian economy but also serves as a reminder of the efficacy of the GST framework, which has been continuously evolving since its implementation in 2017. These robust revenues imply enhanced compliance and a secure revenue base for both the central and state governments, enabling them to further invest in developmental and social welfare projects.
As April’s figures reach unprecedented heights, stakeholders from policymakers to business owners are presented with an optimistic outlook for the financial year. This uptrend in GST collections is a promising indicator of India’s growing economy, providing a solid foundation for the continuing progress and stability of the nation’s fiscal architecture.
