GST collections up 15% to Rs 1.68 lakh cr in Nov; economists credit late festive season to growth, s
GST collections up 15% to Rs 1.68 lakh cr in Nov; economists credit late festive season to growth, s
The gross Goods and Services Tax (GST) revenue collected in the month of November 2023 was up 15 per cent to Rs 1,67,929 crore, the Ministry of Finance said on Friday. The GST mop-up was over Rs 1,45,867 crore in November 2022. The November 2023 collections are, however, lower than Rs 1,72,003 crore recorded in October 2023, which was the second-highest collection ever since the GST rollout. This is the sixth time in FY 2023-24 that gross GST collection crossed Rs 1.60 lakh crore mark.
“The gross GST revenue collected in the month of November, 2023 is Rs 1,67,929 crore out of which CGST is Rs 30,420 crore, SGST is Rs 38,226 crore, IGST is Rs 87,009 crore (including Rs 39,198 crore collected on import of goods) and cess is Rs 12,274 crore (including Rs 1,036 crore collected on import of goods),” the ministry said in a statement.
“Increased GST revenues are primarily on account of increased domestic activity, festive season last month and increased tax administration. The numbers can be said to be an indicator of a stable Indian economy as we see 20 per cent increase in domestic transactions compared to the same month last year. Increased GST collections in Arunachal Pradesh, Nagaland, Mizoram, Tripura, Ladakh, etc. also indicates increase in consumption in these parts of the country,” said Saurabh Agarwal, Tax Partner, EY.
Aditi Nayar, Chief Economist, Head Research and Outreach, ICRA Ltd, said, “The healthy growth in GST collections is enthusing, although it may partly reflect the later onset of the festive season this year. We expect CGST collections to modestly exceed the budget estimates.”
Gunjan Prabhakaran, Partner & Leader, Indirect Tax, BDO India, “While the GST collection has seen a minor drop on a month-on-month basis, it has shown a healthy growth of ~15 per cent on year-on-year basis. One of the factors which contributed to the year-on-year basis growth is the delayed festive season this year.”
Further, it added that the government has settled Rs 37,878 crore to CGST and Rs 31,557 crore to SGST from IGST. The total revenue of Centre and the States in the month of November 2023 after regular settlement is Rs 68,297 crore for CGST and Rs 69,783 crore for the SGST.
During the month, the finance ministry added that the revenues from domestic transactions (including import of services) are 20 per cent higher than the revenues from these sources during the same month last year.
Further, the gross GST collection for the financial year 2023-24 ending November 2023 was at Rs 13,32,440 crore, averaging Rs 1.66 lakh per month, which is 11.9 per cent higher than the gross GST collection for the FY 2022-23 ending November 2022 (Rs 11,90,920 crore, averaging Rs 1.49 lakh crore per month.
Meanwhile, Saurabh Agarwal from EY added, “This robust growth mirrors the country’s resilient GDP expansion of 7.6 per cent, announced yesterday. The upsurge in collections is not confined to specific states; rather, it is a nationwide phenomenon, with an overall increase of 20 per cent in domestic transactions compared to the collections in November 2022. To further bolster collections, fostering a conducive business environment is essential. This can be achieved by expediting the adjudication process and providing relief to taxpayers from the recent spike in Show Cause Notices issued by GST authorities.”
Source: Financial Express