GST revenues will zoom 11% in FY25’

New Delhi: The government expects average monthly GST collections to touch about Rs1.85 lakh crore in the next fiscal, up from about Rs1.66 lakh crore this year, Revenue Secretary Sanjay Malhotra said on Friday. In a post-Budget interview, Malhotra also said the incorporation date for startups to avail of tax benefits for three years out of 10 have been extended by a year till March 31, 2025. He also said the customs duty cut in mobile spare parts and components to 10 per cent is intended to simplify tax structure, reduce classification disputes and should further spur investment in mobile manufacturing.

Finance Minister Nirmala Sitharaman in her 2024-25 interim Budget speech had said the GST taxpayer base as well as monthly revenues have doubled since its launch. The monthly Goods and Services Tax (GST) collection has crossed Rs1.70 lakh crore in three months this fiscal, taking the average monthly mop-up to Rs1.67 lakh crore in current fiscal.

“GST collections are expected to grow about 11 per cent in 2024-25. If the monthly collection is Rs1.67 lakh crore this fiscal, a growth of 11 per cent would be Rs1.80-1.85 lakh crore monthly collections. This should be the new normal for GST collection in the next fiscal,” Malhotra said.

In the next fiscal, the Budget has estimated GST collections at Rs10.68 lakh crore, a 11.6 per cent growth over Rs9.57 lakh crore mop-up in 2023-24. With regard to duty cut on imports of mobile spare parts notified on January 30, Malhotra said the revenue implication will be about Rs500 crore. “The duty cut simplifies the taxation structure and classification dispute because some of the mobile parts were at 15 per cent, some at 10 per cent, so there were some overlap. So, to avoid disputes, we have reduced tax rates to 10 per cent. Manufacturing of mobile is doing very well. This will hopefully further spur investment in the mobile manufacturing sector,” Malhotra said.