GST collection hits record high of Rs 2.10 lakh crore in April

Union Finance Minister Nirmala Sitharaman said the GST collection crossed the Rs 2 lakh crore benchmark “thanks to the strong momentum in the economy and efficient tax collections”. She also said that there are no pending dues to states on account of settlement of Integrated GST — the tax levied on all inter-state supplies of goods and services.

“An #IGST amount of `50,307 crore to Centre and `41,600 crore to States has been cleared. This #IGST settlement of `91,907 crore is `4,413 crore more than the actual net IGST collections of `87,494 crore and stands settled by the Central Government. There are NO DUES pending on account of IGST settlement to the States,” Sitharaman posted on social media platform X.

After accounting for refunds, the net GST revenue in April came in at Rs 1.92 lakh crore, an increase of 15.5 per cent from the corresponding period last year. “The Gross Goods and Services Tax (GST) collections hit a record high in April 2024 at Rs 2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%),” the Finance Ministry said in a statement.

In the previous month, on a net basis, taking into account the impact of refunds, GST revenue had risen by 18.4 per cent to Rs 1.65 lakh crore and on a gross level rose 11.5 per cent to Rs 1.78 lakh crore in March. For the full financial year 2023-24, net GST revenue had stood at Rs 18.01 lakh crore, a growth of 13.4 per cent.

State-wise data for April showed that out of 38 states/Union territories (including Centre’s jurisdiction), 19 states/ UTs recorded higher growth in GST collections than the national average of 12.4 per cent growth rate. In absolute terms, Maharashtra was at the top with collection of Rs 37,671 crore (13 per cent growth), followed by Karnataka with collection of Rs 15,978 crore (9 per cent growth), Gujarat with collection of Rs 13,301 crore (13 per cent growth), Uttar Pradesh with Rs 12,290 crore collection (19 per cent growth), Tamil Nadu with Rs 12,210 crore (6 per cent growth) and Haryana with Rs 12,168 crore collection (21 per cent growth).

The north-eastern states registered a contraction in GST collections including Sikkim (-5 per cent), Arunachal Pradesh (-16 per cent), Meghalaya (-2 per cent), and Nagaland (-3 per cent), along with Jammu & Kashmir (-2 per cent), Lakshadweep (-57 per cent) and the Andaman and Nicobar Islands (-30 per cent).

Tax experts said economic activity and audits by both central and state GST authorities have reflected in the record-high collection. “The consistent growth in GST collections with this one being the highest collection ever is a big cheer and reflects upon the strong domestic economy especially given the fact that growth on account of domestic transactions is 13.4% as compared to imports which is at 8.3%. Another significant reason for this growth could be linked to the deadline for GST audits and corresponding notices issued during this year,” said Abhishek Jain, Partner & National Head, Indirect Tax, KPMG.

While some part of the increased collections is attributable to the financial year-end transactions, tax experts said it is also reflective of the improvement in GST compliance by businesses. “The relentless focus on GST audits by both central and state GST authorities together with the periodic drives to stamp out evasion has led to a large increase in the GST compliance focus of business across the country,” MS Mani, Partner, Deloitte India said, adding that significant increase in GST collections has been seen across all major producing and consuming states indicating that it is widespread and not restricted to a few industrial pockets.

“Every component of the GST collection has contributed significantly…the concerted efforts of the GST officials including zero tolerance for non-filers, coupled with rigorous measures to combat fake invoicing and the registrations has significantly bolstered GST collections in the state’s coffers,” Saurabh Agarwal, Tax Partner, EY said.

Going ahead, GST collections are expected to be around the Rs 1.7-2 lakh crore mark, Shravan Shetty, Managing Director, Primus Partners said, adding that it should pick up in the festive season after the rainy season. “Key factors to consider for the coming months would be the current heat wave and the impact of it on manufacturing and services output. Also, the coming monsoon will impact the agricultural and rural economy which will determine GDP growth and GST collections in the second half of the year,” he said.

There has been a noticeable surge in notices on account of mismatch, reconciliation, erroneous input tax credit, and other investigations that have likely contributed to the uptick in collections, Krishan Arora, Partner, Indirect Taxes, Grant Thornton Bharat said. “As we celebrate this significant milestone, it is imperative to look ahead with cautious optimism. The sustainability of this growth trajectory in the coming months would definitely be a key area for the government to watch out for. Factors such as evolving consumption patterns, regulatory changes, and global economic dynamics will undoubtedly influence the trajectory of GST collections,” he said.

Overall, the total GST collections stood at Rs 2,10,267 crore in April, out of which Central GST (CGST) — the tax levied on intra-state supplies of goods and services by the Centre — was Rs 43,846 crore, State GST (SGST) — the tax levied on intra-state supplies of goods and services by the states — was Rs 53,538 crore, IGST was Rs 99,623 crore (including Rs 37,826 crore collected on import of goods) and cess was Rs 13,260 crore (including Rs 1,008 crore collected on import of goods).

In April, the government settled Rs 50,307 crore to CGST and Rs 41,600 crore to SGST from IGST. As a result, the total revenue for the month post settlement was Rs 94,153 crore for CGST and Rs 95,138 crore for SGST.