GST Collection Reaches an All-Time High Of Rs 1.87 Trillion In April

The goods and services tax (GST) collection in India increased by 12% year on year in April to an all-time high of Rs 1.87 trillion, according to figures released by the finance ministry on Monday. The strong mop-up was fueled mostly by increased year-end sales, data analytics that ensured enhanced compliance, and sustained economic development.

The previous biggest collection was Rs 1.68 trillion in April of last year, while the mop-up in March of this year was Rs 1.60 trillion.

April 2023 also marked the largest tax collection on a single day in history. “On April 20, Rs 68,228 crore was paid through 9.8 lakh transactions,” said the government in a statement.

Prime Minister Narendra Modi hailed it as “great news for the Indian economy”. “Rising tax collection despite lower tax rates shows the success of how GST has increased integration and compliance,” he tweeted.

According to the report, Central GST was Rs 38,440 crore, SGST was Rs 47,412 crore, IGST was Rs 89,158 crore (including Rs 34,972 crore collected on import of goods), and cess was Rs 12,025 crore.

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According to the finance ministry,

After interstate transactions were settled, the Centre collected Rs 84,304 crore in Central GST, while states collected Rs 85,371 crore in SGST.

The GST cess on high-end products, cigarettes, and alcoholic beverages raised Rs 12,025 crore, which will be used to reimburse the liquidity assistance provided to states during the epidemic in lieu of GST compensation.

“The record GST collection relates to transactions in March, the final month of FY23, when all organisations would have been eager to end the fiscal year on a high note,” M S Mani, partner, Deloitte India, said.

He went on to say that the majority of significant states reported 20% or more growth over the same period last year, demonstrating broad-based growth across sectors and states.

In April, Maharashtra, Karnataka, and Uttar Pradesh reported more than 20% yearly rise in GST revenue, while Punjab and Tamil Nadu reported 16% and 19% growth, respectively. Delhi reported an annual growth rate of 8%.