India’s Gross Goods and Services Tax (GST) collections reached a new record of Rs 2.10 lakh crore in April 2024, representing a stunning 12.4% year-on-year increase. This spike was mostly driven by a 13.4% increase in domestic transactions over the previous year. The Finance Ministry released numbers on May 1 that show the country’s indirect tax system is stable and growing.
Key Drivers of Growth
A number of factors have contributed to a significant increase in GST revenues. The increase in domestic transactions remained important showing that the country’s economy is growing. Also, increasing compliance supported by anti-evasion measures enacted by authorities, played a crucial role in this growth. Furthermore, a significant increase in imports, up 8.3% from the previous year aided the surge in GST revenues.
Net GST Revenue and Refunds
After accounting in refunds, the net GST income for April 2024 was Rs 1.92 lakh crore, a 17.1% rise over the same period last year. This significant increase demonstrates the success of the steps used to reduce tax evasion and simplify the tax system.
State-wise Performance
Compared to the national average of 12.4%, 19 of the 38 states and union territories had better growth rates in their GST collections. With receipts of Rs 37,671 crore, or a 13% growth rate, Maharashtra was the highest performer in absolute terms. Other noteworthy states that demonstrate remarkable growth rates and make substantial contributions to the total GST collections include Karnataka, Gujarat, Uttar Pradesh, Tamil Nadu, and Haryana.
Breakdown of Total GST Collections
There were Rs 2,10,267 crore in total GST revenues as of April 2024. The total amount of Central Goods and Services Tax (CGST) was Rs 43,846 crore, State Goods and Services Tax (SGST) was Rs 53,538 crore, Integrated Goods and Services Tax (IGST) was Rs 99,623 crore (which included Rs 37,826 crore collected on the import of goods), and Cess was Rs 13,260 crore (i.e., Rs 1,008 crore collected on the import of goods).
Revenue Distribution and Settlement
After the collections, the government distributed the Central Government Rs 50,307 crore and the State Government Rs 41,600 crore from the Integrated GST pool. With the Centre obtaining Rs 94,153 crore and the states receiving Rs 95,138 crore after settlement.