GST revenue up 15% to nearly ₹1.50 lakh crore | Latest News India - Hindustan Times

GST revenue up 15% to nearly 1.50 lakh crore

ByRajeev Jayaswal
Jan 02, 2023 02:19 AM IST

GST revenue has surpassed the ₹1.50-lakh crore mark twice — the highest ever collection of ₹1,67,540 crore in April 2022, and the second highest of ₹1,51,718 crore in October. Sequentially, collections in December were about 2.5% higher than the ₹1,45,867 crore revenue of the preceding month.

New Delhi: The Goods and Services Tax (GST) revenue in December 2022 recorded a 15.2% year-on-year jump at over 1.49 lakh crore — the third highest collection ever, crossing the 1.40-lakh crore benchmark for the 10th consecutive month — on robust business activities despite global headwinds.

Representational Image(MINT_PRINT)
Representational Image(MINT_PRINT)

According to experts, the GST revenue is a weathervane of economic health and the collections in December — reflecting actual transactions undertaken in November — show a good health of business activities. “Robust GST collections give a great start to the new calendar year. 1.5 lakh crore seems to be the new normal even after peak festive sales are over; also, the collections have demonstrated a fantastic growth vis-a-vis last year,” said Abhishek Jain, Partner-Indirect Tax at KPMG.

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Since the inception of the new indirect tax regime in July 2017, monthly GST revenue has surpassed the 1.50-lakh crore mark twice — the highest ever collection of 1,67,540 crore in April 2022, and the second highest of 1,51,718 crore in October. Sequentially, collections in December were about 2.5% higher than the 1,45,867 crore revenue of the preceding month.

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According to the Union finance ministry, robust economic activities were also reflected in increased numbers of e-way bills. During the month of November 2022, 79 million e-way bills were generated compared to 76 million e-way bills in October 2022, it said. Electronic way bills are a digital compliance mechanism under the GST regime to track the movement of goods. E-way bills are required for the movement of goods worth 50,000 and above.

“During the month, revenues from import of goods were 8% higher and the revenues from domestic transaction (including import of services) are 18% higher than the revenues from these sources during the same month last year,” the finance ministry said.

MS Mani, partner at Deloitte India, said: “An 18% increase in the GST revenues from domestic transactions viewed with the increase in e-way bill issuance and the significant increase in GST collections by key manufacturer and consuming states, would be indicative of a sustained manufacturing and consumption cycle across recent months.”

According to the official data for December 2022, key manufacturing states have also shown a double-digit growth in revenue on an annualised basis. GST revenues of Haryana in the month saw a 14% y-o-y growth at 6,678 crore; Uttar Pradesh (19% at 7,178 crore); Gujarat (26% at 9,238 crore); Maharashtra (20% at 23,598 crore); Karnataka (21% at 10,061 crore); and Tamil Nadu (25% at 8,324 crore).

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Out of the gross GST revenue collected during December 2022, the central GST (CGST) component was 26,711 crore, state GST (SGST) was 33,357 crore, integrated GST (IGST) was 78,434 crore (including 40,263 crore collected on import of goods) and the cess was 11,005 crore (including 850 crore collected on import of goods), the finance ministry said.

IGST is levied on the interstate transfer of goods and services and it is shared between the Centre and the state. All imports are treated as interstate supplies and accordingly, IGST is levied on them in addition to the applicable customs duties.

“The government has settled 36,669 crore to CGST and 31,094 crore to SGST from IGST as regular settlement. The total revenue of Centre and the states after regular settlements in the month of December 2022 is 63,380 crore for CGST and 64,451 crore for the SGST,” it added.

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