Breaking records, the gross Goods and Services Tax (GST) revenue rose to ₹1,87,035 lakh crore in April which is 16.8% higher than ₹1,60,122 lakh crore in March. The amount is also an all-time high figure in terms of GST collection. The April collections is ₹19,495 crore more than the previous highest collection of ₹1,67,540 lakh crore in April 2022. The figure has also crossed the ₹1.75 lakh crore mark for the first time.
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“The record-breaking GST collection of ₹1.87 lakh crore in April 2023 is a clear indication of the positive impact of e-invoicing and strengthened compliance regulations, coupled with India’s thriving economy. As anticipated, the 12% growth from the previous year in April 2022 (₹1.67 lakh crore) is attributed to the rise in e-way bills generated in March 2023 (₹9.09 crore), which witnessed a 16% growth from the same period last year (₹7.81 crore in March 2022). With the addition of new taxpayers and the government’s focus on digitisation and transparency, we anticipate that the collections will surpass ₹2 lakh crore in the upcoming financial year,” Gautam Mahanti, Business Head, IRIS Tax Tech.
Highest ever GST collection
Also for the first time, the gross collections have crossed ₹1.75 lakh crore mark, official sources said.
According to the Finance Ministry data, out of the gross collections of ₹1,87,035 crore, CGST was ₹38,440 crore, SGST was ₹47,412 crore, IGST was ₹89,158 crore (including ₹34,972 crore collected on import of goods) and cess stood at ₹12,025 crore (including ₹901 crore collected on import of goods).
Though it is good achievement but experts have other views too.
Vivek Jalan, Partner Tax Connect Advisory, a multi-disciplinary tax consultancy firm, belives, while the PIB has hailed the highest ever GST Collections, yet statistically achievement may be termed as reasonable. The budget 2023 has projected an uptick of 12% in GST Collections in FY 23-24 vis-a-vis last FY. If inflation is expected at 5.5% and GDP Growth at 6%, then the Indirect Tax Buoyancy is budgeted is not even 1%.
“The CBIC is expected to achieve more, which it has not in April 2023 wherein the growth in GST Collections is exactly 12%. Possibly we could expect more activity in terms of automated scrutiny, etc in the rest of FY 23-24 to stay at par with the Budget. The restriction on e-invoice to be done in 7 days staring 1st May 2023, for some taxpayers, could be a step in this direction,” he further added.
