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GST collection in Feb ₹1.68 lakh cr, 4th highest so far
The data released on Friday upwardly revised gross revenue of previous month (January) to ₹1,74,106 crore from ₹1,72,129 crore
Goods and Services Tax (GST) revenues surpassed ₹1.68 lakh crore in February, a 12.5% year-on-year increase, coming in as the fourth highest in 79 months since the new tax regime was rolled out in July 2017, highlighting robust growth of the Indian economy, and better tax compliance.
“This growth was driven by a 13.9% rise in GST from domestic transactions and 8.5% increase in GST from import of goods,” the Union finance ministry said in a statement on Friday. Gross revenues in the month of February reflects business transactions of January.
Gross GST revenues for February was ₹1,68,337 crore. GST revenue net of refunds for the month was ₹1.51 lakh crore, a 13.6% growth on an annualised basis, it added.
The data released on Friday upwardly revised gross revenue of previous month (January) to ₹1,74,106 crore from ₹1,72,129 crore.
GST revenues in 2023-24 have seen a consistent performance with average monthly collection of ₹1.67 lakh crore, significantly higher than ₹1.50 lakh crore in 2022-23 .
Deloitte India partner MS Mani said that coming on the back of robust gross domestic product (GDP) numbers for the third quarter (8.4%), the impressive the GST collections reflect the broad based consumption increase across sectors as GST is a consumption tax. “The impressive collections for February 2024 will provide further comfort to the government that the tax collection targets for the year will be exceeded by a good margin.”
According to the second advance estimates data released on Thursday by National Statistical Office (NSO), the Indian economy saw a robust 8.4% growth the third quarter of 2023-24, driven by investment push, increased manufacturing and services activities and an upside in tax revenue. The economy is projected to expand by 7.6% in the current fiscal, faster than the 7.3% forecast made by the first advance estimates on January 5, 2024.
Total GST revenues in the first 11 months of the current financial year have crossed ₹18.40 lakh crore, 11.7% up from the same period in FY23. Cumulative GST revenue net of refunds in the current fiscal year (up to February) is ₹16.36 lakh crore registering an annualised growth of 13%. “Overall, the GST revenue figures demonstrate continued growth momentum and positive performance,” the finance ministry said in its statement.
By states, GST collections in February 2024 saw a mixed trend, according to the official data. While some major states such as Maharashtra, Gujarat, Karnataka, Tamil Nadu and Haryana posted a double-digit year-on-year growth, there was a contraction in Bihar, Jharkhand, Manipur, Nagaland, Mizoram and Lakshadweep.
“A recent rise in GST collections from smaller Indian states and union territories, including Jammu & Kashmir, Assam, Dadra Nagar Haveli, and Ladakh, suggests that economic growth is becoming more widespread and inclusive across the country,” said Saurabh Agarwal, tax Partner at EY. GST collections in J&K saw an annualised growth of 23% in February .
