In a significant development, Goods and Services Tax (GST) revenues in India soared to ₹1.68 lakh crore in February 2024, marking a substantial increase of 12.5 percent compared to the previous year. This surge in collections, buoyed by a rise in domestic sales and imports, underscores the resilience of the Indian economy amidst ongoing challenges.
According to a statement from the finance ministry, the robust growth in GST revenues was driven by a 13.9 percent increase in GST from domestic transactions and an 8.5 percent rise in GST from the import of goods. The gross GST collection for the fiscal year April-February reached ₹18.40 lakh crore, representing an 11.7 percent year-on-year growth.
Furthermore, the net GST revenue for February 2024 stood at ₹1.51 lakh crore, reflecting a growth of 13.6 percent over the same period last year. The central government disbursed ₹41,856 crore to Central GST and ₹35,953 crore to State GST from the Integrated GST collected, totaling ₹73,641 crore for CGST and ₹75,569 crore for SGST after regular settlement in February.
This achievement comes on the heels of the highest-ever GST collection recorded in April 2023, followed by notable figures in January 2024 and October 2023. February 2024 witnessed the fourth-highest monthly collections to date, reinforcing the steady growth trajectory of GST revenues.
Industry experts have lauded this positive trend, attributing it to the robust GDP numbers for the third quarter and a broad-based increase in consumption across sectors. Deloitte India Partner M S Mani highlighted the impressive growth in GST collections across major states, indicating a nationwide consumption surge.
KPMG in India Partner and National Head, Indirect Tax Abhishek Jain, emphasized the resilience of the Indian economy and the strength of domestic consumption. Similarly, N.A. Shah Associates, Partner, Indirect Tax, Parag Mehta, underscored the stabilizing effect of GST and the strict compliance measures implemented to curb tax evasion.
Sources By Agencies