India’s Goods and Services Tax (GST) collection has witnessed a remarkable surge, registering a 10% increase to ₹1.73 lakh crore in May 2024. This significant growth is a testament to the country’s robust economic activity and the government’s efforts to enhance compliance.
A Closer Look at the Numbers:
The gross GST revenue collected in May 2024 reflects a 15.3% year-on-year (YoY) growth, indicating a strong recovery and sustained momentum in the economy. The impressive figures are primarily driven by a substantial rise in domestic transactions, which grew by 15.3%
Breaking Down the Components:
The total GST revenue comprises various components, including:
• Central Goods and Services Tax (CGST): ₹32,409 crore
• State Goods and Services Tax (SGST): ₹40,265 crore
• Integrated Goods and Services Tax (IGST): ₹87,781 crore, including ₹39,879 crore collected on imported goods
• Cess: ₹12,284 crore, including ₹1,076 crore collected on imported goods.
The Fiscal Year in Perspective:
Looking at the fiscal year 2024-25 up to May 2024, the gross GST collections have reached ₹3.83 lakh crore, showcasing an 11.3% YoY growth. This robust performance is underpinned by a strong increase in domestic transactions, which have seen a 14.2% rise, and a slight increase in imports by 1.4%
Implications for the Economy:
The steady rise in GST collections is a positive indicator of the health of India’s economy. It reflects the growing consumer confidence, the expansion of the tax base, and the effectiveness of the government’s measures to improve tax compliance.
Conclusion:
The GST collection figures for May 2024 are not just numbers; they represent the resilience and strength of India’s economy. As the nation continues to navigate through the challenges of the global economic landscape, the consistent performance of GST collections offers a beacon of hope and a promise of sustained growth.
