India Records Second Highest Monthly Gross GST Revenue Collection In March 2024

Goods and Services Tax (GST) on Monday Reported revenue for March 2024 hits an impressive Rs 1.78 lakh crore, marking the second-highest collection ever recorded. This milestone comes alongside 11.5% year-on-year growth, showcasing the nation's robust economic recovery.

The surge in GST collection is primarily fueled by a significant rise in domestic transactions, which witnessed a notable growth rate of 17.6%. Furthermore, as of March 2024, the GST revenue, net of refunds, is Rs 1.65 lakh crore, a significant increase of 18.4% over the same period in the previous year.

FY 2023-24: A Year of Strong, Consistent Performance

FY 2023-24 emerges as a milestone year, with total gross GST collection surpassing the Rs 20 lakh crore mark, marking an 11.7% increase compared to the previous fiscal year. The average monthly collection for this fiscal year stands at Rs 1.68 lakh crore, significantly surpassing the previous year's average of Rs 1.5 lakh crore. Notably, the GST revenue net of refunds for the current fiscal year as of March 2024 stands at Rs 18.01 lakh crore, reflecting a commendable growth of 13.4% over the same period last year.

Positive Performance Across Components

Breaking down the March 2024 collections, we see positive performance across various components:

Central Goods and Services Tax (CGST): Rs 34,532 crore
State Sales Tax (Sales and Use Tax): INR 43,746 crore
Integrated products and Services Tax (IGST): 40,322 crore of the Rs 87,947 crore collected on imported products is included in this amount.
Cess: INR 12,259 crore, including of INR 996 crore amassed from imported merchandise

Similarly, positive trends are observed in the entire FY 2023-24 collections, with significant contributions from CGST, SGST, IGST, and Cess.

Inter-Governmental Settlements

The Central Government paid Rs 37,704 crore to the SGST and Rs 43,264 crore to the CGST from the IGST that was collected in March 2024. This translates to a total revenue of Rs 77,796 crore for CGST and Rs 81,450 crore for SGST for March 2024 after regular settlement. For FY 2023-24, the central government settled Rs 4,87,039 crore to CGST and Rs 4,12,028 crore to SGST from the IGST collected, facilitating smoother inter-governmental financial transactions.

GST

India's robust growth in GST collections for March 2024 and the entire FY 2023-24 underscores the nation's economic resilience and steady recovery trajectory. With positive performance across various components and consistent inter-governmental settlements, the GST regime continues to play a pivotal role in bolstering the nation's fiscal health and driving economic growth. As India navigates through global economic challenges, the strong GST revenue collection stands as a testament to the nation's resilience and commitment to sustained economic prosperity.