India's GST collections in April surged to a record Rs 2.10 lakh crore, showcasing a 12.4% rise from April last year when collections stood at Rs 1.87 lakh crore, the Government data showed. The previous record was achieved in April 2023, with collections hitting Rs 1.87 lakh crore.
The notable upsurge in GST collections was mainly driven by a 13.4% growth in domestic transactions and an 8.3% increase in imports, as per the Finance Ministry.
As per the data, the Central Goods and Services Tax (CGST) totaled Rs 43,846 crore, while the State Goods and Services Tax (SGST) stood at Rs 53,538 crore.
The Integrated Goods and Services Tax (IGST) reached Rs 99,623 crore, with Rs 37,826 crore collected on imported goods. Moreover, the cess totaled Rs 13,260 crore, with Rs 1,008 crore stemming from imported goods.
Notably, Maharashtra led with GST collection of Rs 37,671 crore (13% growth), trailed by Karnataka with Rs 15,978 crore (9% growth) and Gujarat with Rs 13,301 crore (13% growth).
Following the aforementioned states, Uttar Pradesh recorded a collection of Rs 12,290 crore (19% growth), Tamil Nadu with Rs 12,210 crore (6% growth), and Haryana with Rs 12,168 crore (21% growth).
Commenting on GST collections by Pratik Jain, Partner, PwC India said, "As expected, the collections for April 24 have crossed a major milestone of 2 lac crore. It is particularly encouraging to see that that growth is largely led by domestic consumption. With next wave of GST reforms expected after the formation of new Government, the growth may be further accelerated. It may also enable the Government to take bolder decisions such as rate rationalization or bringing products such as ATF and natural gas under the GST ambit."
Meanwhile, Vivek Jalan, Partner at Tax Connect Advisory Services LLP, a PAN India multi-disciplinary consulting firm said, "From July 2017 when GST started with an average monthly revenue of around Rs.0.9 Lakh Crore to April 2024 when it has grossed Rs.2.1 Lakh Crore, GST revenues have witnessed an approx. growth of 13% per annum on an average. Considering an inflation of 5% and GDP growth of 7%, there has been an average buoyancy of 1% on an average per annum over the last seven years, which also have witnessed a two year unprecedented slump in terms of Covid-19 lockdowns."
"It shows, among other factors that the Indian Economy is on a fast track to formalization and businesses are fast becoming organized and are coming into the mainstream," said Jalan.
In addition, as per Sanjay Chhabria, Senior Director, Indirect Tax at Nexdigm, "The significant rise in domestic transactions can be attributed to consumer spending being focused on beating the summer heat, with purchases like air conditioners, beverages, as well as increased travel during the long vacations from schools and colleges. Interestingly this time the eastern states have shown a significant growth as compared to their previous trends."