New Delhi: The latest data released by the Indian Government presents a staggering achievement in the realm of Goods and Services Tax (GST) collections for the month of April. Surging to an unprecedented high, the collections soared to a monumental Rs 2.10 lakh crore, marking a notable 12.4% surge from the corresponding period last year, when collections stood at Rs 1.87 lakh crore. This remarkable feat eclipses the previous record set in April 2023, underscoring a significant upward trajectory in revenue generation.
This substantial upsurge in GST collections finds its impetus primarily in a robust 13.4% growth in domestic transactions, complemented by an 8.3% uptick in imports, as detailed by the Finance Ministry. Delving into the specifics, the Central Goods and Services Tax (CGST) recorded a substantial sum of Rs 43,846 crore, whereas the State Goods and Services Tax (SGST) amounted to Rs 53,538 crore.
The Integrated Goods and Services Tax (IGST) witnessed a substantial rise, reaching an impressive Rs 99,623 crore, with a noteworthy Rs 37,826 crore amassed from imported goods alone. Furthermore, the cess registered a commendable Rs 13,260 crore, with Rs 1,008 crore stemming from imported goods.
The regional breakdown of these figures reveals Maharashtra leading the charge with a robust GST collection of Rs 37,671 crore, signaling a commendable 13% growth. Following suit are Karnataka with Rs 15,978 crore (9% growth) and Gujarat with Rs 13,301 crore (13% growth).
Noteworthy performances are also observed in Uttar Pradesh, recording a collection of Rs 12,290 crore (19% growth), Tamil Nadu with Rs 12,210 crore (6% growth), and Haryana with Rs 12,168 crore (21% growth), further underlining the widespread nature of this fiscal achievement.
Commenting on this significant milestone, Pratik Jain, Partner at PwC India, expressed optimism, highlighting the pivotal role of domestic consumption in propelling this growth trajectory. He anticipates that with forthcoming GST reforms and the formation of a new government, this growth momentum could be further accelerated, potentially paving the way for bold decisions such as rate rationalization or expanding the GST ambit to include products like ATF and natural gas.
Echoing this sentiment, Vivek Jalan, Partner at Tax Connect Advisory Services LLP, underscored the remarkable journey of GST revenues since its inception in July 2017. With an average monthly revenue of around Rs.0.9 lakh crore at its inception, GST has now crossed the Rs.2.1 lakh crore mark in April 2024, reflecting an approximate annual growth rate of 13%. This growth, despite facing challenges such as the Covid-19 pandemic-induced lockdowns, indicates a steady buoyancy in the economy, coupled with a burgeoning trend towards formalization and organizational efficiency among businesses.
Adding another perspective, Sanjay Chhabria, Senior Director of Indirect Tax at Nexdigm, attributed the substantial rise in domestic transactions to heightened consumer spending, particularly focused on alleviating the summer heat through purchases like air conditioners and beverages, alongside increased travel during extended school and college vacations. Notably, this surge in consumer activity has also been observed in the eastern states, signifying a broader trend shift in consumption patterns.
