April's GST Collection Exceeds Rs 2 Trn, Hits Record High

In April, India's gross Goods and Services Tax (GST) collection surpassed Rs 2 trillion for the first time, marking a significant milestone with a 12.4% year-on-year growth. After refunds, net GST receipts increased by 15.5% to Rs 1.92 trillion. Usually, April sees the highest GST collections for the financial year.

The surge in GST revenue was mainly fueled by domestic activities, showing a 13.4% growth, while GST from imports rose by 8.3%. However, Integrated GST (IGST) on imports slightly decreased by around 2%. The Union government settled Rs 91,907 crore from IGST collections, exceeding the actual collection by Rs 4,413 crore.

State GST (SGST) and Central GST (CGST) revenues grew significantly by 25.9% and 27.8%, respectively. Almost all states and Union territories, except a few, observed a rise in GST collections.

Finance Minister Nirmala Sitharaman attributed the record GST collections to robust economic activities and efficient tax administration. She commended the efforts of tax authorities at both state and central levels.

Experts credit the rise in GST revenue to administrative measures, including crackdowns on non-compliance and fake invoicing. Additionally, increased consumer spending on products like air conditioners and beverages, along with heightened travel during school vacations, contributed to the surge in domestic transactions.

The substantial growth in GST revenue has prompted calls for tax reforms, with experts advocating for GST 2.0 to address evolving economic needs. The robust GST collections reflect the resilience of India's tax system and its ability to adapt to changing circumstances.