New Delhi: In a remarkable turn of events, India’s financial health witnessed a significant boost as the Gross Goods and Services Tax (GST) collections for the month of April 2024 soared to an all-time high. Official records now show that the GST collections have crossed a groundbreaking threshold of Rs 2.10 lakh crore.
This noteworthy achievement indicates a hearty 12.4% year-on-year increase. It is attributable to the robustness in the economy, underscored by a 13.4% uptick in domestic transactions and an 8.3% rise in imports. The net GST revenue, post-refunds, for April 2024 has been reported at a whopping Rs 1.92 lakh crore. When juxtaposed with the numbers from the same period last year, this reflects an impressive 17.1% growth.
Let’s delve into the specifics of the April 2024 collections:
Central Goods and Services Tax (CGST): Garnered a total of Rs 43,846 crore;
State Goods and Services Tax (SGST): Accumulated Rs 53,538 crore;
Integrated Goods and Services Tax (IGST): Recorded a remarkable Rs 99,623 crore, from which Rs 37,826 crore originated from imported goods;
Cess: Yielded Rs 13,260 crore, including Rs 1,008 crore attributed to imports.
The revenue distribution underwent a substantial inter-governmental settlement in April 2024, where the central government allocated Rs 50,307 crore to CGST and Rs 41,600 crore to SGST from the IGST collections. This translates into an impressive total revenue of Rs 94,153 crore for CGST and Rs 95,138 crore for SGST post the regular settlement process for the month.
The record-setting figure of Rs 2 lakh crore in GST collections marks a commendable testament to the resilience and efficacy of the Indian tax system amidst a dynamic economic landscape. Each segment of GST collection, including CGST, SGST, IGST, and Cess, has substantially contributed to this success.
Saurabh Agarwal, Tax Partner at EY, reflected on this milestone saying, “The unprecedented accomplishment of exceeding the ₹2 lakh crore mark in GST collections for April 2024 underlines the unwavering robustness of our tax system even as economic conditions evolve. Notably, every constituent of the GST apparatus has played a significant role. All the categories – CGST, SGST, IGST, and Cess – have demonstrated promising growth, lending further stability to our fiscal structure.”
Agarwal continues to highlight the ongoing efforts to enhance GST compliance, adding, “The dedicated initiatives of GST officials enforce a zero-tolerance policy toward non-filers. This, along with stern actions to curb fake invoicing and enforce registrations, has substantially fortified the GST collections, thereby reinforcing the financial reservoirs of the states.”
With fierce determination and vigilant actions, the government’s revenue gathering wing has not only maintained but augmented the efficiency of tax collections. These promising numbers are a testament not just to India’s growing economic activity but to the strength of its regulatory frameworks and compliance measures. The remarkable performance of April 2024 has set the bar higher, leaving analysts and economists optimistic about the fiscal direction in which India is heading.
