NEW DELHI — GST collections crossed INR 1.60 lakh crore mark for the fourth time since the roll-out of the indirect tax regime, rising 12 per cent to over INR 1.61 lakh crore in June, the Finance Ministry said on Saturday.
As the Goods and Services Tax (GST) completed 6 years of implementation, the government recounted the benefits that the indirect tax regime brought about to the economy, including lower tax rates for goods and services and removed discretion.
[bsa_pro_ad_space id=1]The average gross GST collection for the first (April-June) quarter of the 2021-22, 2022-23 and 2023-24 stood at INR 1.10 lakh crore, INR 1.51 lakh crore and INR 1.69 lakh crore, respectively, the Finance Ministry said in a statement.
Speaking on the GST Day 2023 event, Central Board of Indirect Taxes and Customs (CBIC) chairman Vivek Johri said the benefits of GST both to the macroeconomy and taxpayers are well documented.
"Greater revenue efficiency, and we have seen some of that today with revenue collection for June exceeding INR 1.60 lakh crore, better compliance, market integration," Johri said.
Finance Minister Nirmala Sitharaman complimented tax officers for their "dedication and commitment and grit", which helped in making monthly GST revenues of INR 1.60 lakh crore a "new normal".
"Whether it is common consumer, whether it is the state government, a matter of tax buoyancy, whether it is making it digital and simpler, GST stands out as an exemplar," Sitharaman said.
In June, the gross GST revenue collected was INR 1,61,497 crore of which Central GST is INR 31,013 crore, State GST is INR 38,292 crore, Integrated GST is INR 80,292 crore (including INR 39,035 crore collected on import of goods) and cess is Rs 11,900 crore (including INR 1,028 crore collected on import of goods).
The revenues for June 2023 are 12 per cent higher than the GST revenues in the same month last year. During the month, the revenues from domestic transactions (including import of services) are 18 per cent higher than the revenues from these sources during the same month last year.
The revenues had touched a record high of INR 1.87 lakh crore in April. In May, it was INR 1.57 lakh crore.
EY LLP Tax Partner Saurabh Agarwal said the GST collection continues to follow an uptrend, and states, including Jammu and Kashmir, Lakshadweep, Nagaland, Mizoram and Manipur, saw remarkable growth in the collection in June.
"With the launch of a special drive of chasing fake GST registrations combined with data analysis using various artificial intelligence tools government seems to be on the track of seemingly upward collection of taxes," Agarwal added.