Year-end compliances lifted India’s gross Goods and Services Tax (GST) revenues past a record ₹2.1 lakh crore in April, reflecting a 12.4% growth over the previous record tally of ₹1.87 lakh crore in the same month last year. Net of refunds, GST revenues for the month were at ₹1.92 lakh crore, 17.1% higher than April 2023’s collection.
Revenues from domestic transactions grew 13.4%, the Finance Ministry said, while goods imports yielded an 8.3% uptick in the indirect tax collection, helping GST inflows “breach the landmark milestone of ₹2 lakh crore”.
This marks a rebound in revenues from goods imports that had contracted 5% in March, while domestic transactions’ growth weakened in April relative to the 17.6% uptick recorded in the previous month. Overall, gross GST revenues had grown at a slower pace of 11.5% in March, while net revenues were up 18.4%, slightly faster than April’s growth in the net kitty.
GST Compensation Cess collections also hit an all-time high of ₹13,260 crore, which included ₹1,008 crore collected on imported goods. The Cess is levied on select goods like automobiles and tobacco products over and above the peak GST rate of 28%.
Initially introduced for five years to compensate States for revenue losses owing to the 2017 switch to the GST regime, the Cess is now being utilised to repay loans taken during the pandemic to recompense States amid a lockdown-triggered collapse in revenues.
The Ministry emphasised that there had been a positive performance across components, pointing to Central Goods and Services Tax (CGST) revenues of ₹43,846 crore, State GST revenues of ₹53,538 crore and Integrated Goods and Services Tax (IGST) inflows of ₹99,623 crore. The IGST collections included ₹37,826 crore collected on imported goods.
The Ministry emphasised that there had been a positive performance across components, pointing to Central Goods and Services Tax (CGST) revenues of ₹43,846 crore, State GST revenues of ₹53,538 crore and Integrated Goods and Services Tax (IGST) inflows of ₹99,623 crore. The IGST collections included ₹37,826 crore collected on imported goods.
“The Central government settled ₹50,307 crore to CGST and ₹41,600 crore to SGST from the IGST collected. This translates to a total revenue of ₹94,153 crore for CGST and ₹95,138 crore for SGST for April, 2024 after regular settlement,” the Ministry statement said.
Four States, including the erstwhile State of Jammu and Kashmir, Arunachal Pradesh and Sikkim, recorded a contraction in revenues last month. Eight States saw muted growth relative to the 13.4% overall growth in domestic revenues, with Jharkhand (3%), Uttarakhand (4%) and Tamil Nadu (6%) seeing the weakest growth. Kerala and Karnataka, both registered a 9% increase in revenues, while Madhya Pradesh and Telangana collections grew 11% each.
Revenues in Gujarat, Maharashtra and West Bengal grew close to the national average at 13%. Mizoram reported the highest growth at 52%, followed by Assam (25%) and Delhi, Bihar and Goa, each of which clocked 23% growth. Haryana reported a 21% rise in revenues, while the growth was 20% for Tripura, 19% for Uttar Pradesh, and 17% for Odisha. Revenues in strife-affected Manipur also reported a 15% uptick.
“A significant reason for this growth could be linked to deadline for GST audits and corresponding notices issued during this year,” said Abhishek Jain, partner and national head for indirect tax at KPMG.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
