GST Monthly Collections Cross Rs 2 Lakh Crore For The First Time In April 2024

GST collections crossed the Rs 2 lakh crore mark for the first time since the rollout of the indirect tax reform in July 2017.

The goods and services tax collected in April grew 12.4% year-on-year to Rs 2.10 lakh crore, led by domestic transactions that grew 13.4% and imports that grew 8.3%, according to the data released by the Ministry of Finance on Wednesday. The net revenue after refunds stood at Rs 1.92 lakh crore, a 15.5% YoY growth. The previous highest-ever collection was in April 2023 at Rs 1.87 lakh crore.

Historically, April collections—which are for transactions in March—register high figures, corresponding with the end of the financial year.

While a part of the increased collections is attributable to the financial year-end upswing, it is also reflective of the significant improvements in the GST compliance by businesses, according to MS Mani, a partner with Deloitte India.

"The relentless focus on GST audits by both Central and State GST authorities together with the periodic drives to stamp out evasion has led to a large increase in the GST compliance focus of business across the country," he said, alluding to the deadline for GST audits and corresponding notices issued during the year.

The GST, which is an indirect tax, also signifies consumer spending that would remain a keenly followed subject in the upcoming months as India braces for longer heat waves and its impact on manufacturing and services output.

The monsoon will also impact the agricultural and rural economy, which will determine the GST collections and growth in the gross domestic product in the second half of the year, according to Shravan Shetty, managing director at Primus Partners.

State-wise trends indicate that Haryana recorded a 21% growth. Uttar Pradesh (19%) and Tamil Nadu (6%) have recorded high monthly collections in actual terms, and they are on the heels of the top three states of Maharashtra, Karnataka and Gujarat.

In actual terms, Maharashtra continued to dominate state-wise collections at Rs 37,671 crore, growing 13 % from Rs 33,196 crore last April. Karnataka and Gujarat followed Maharashtra, although in actual terms, they raked in collections of Rs 15,978 crore and Rs 13,301 crore respectively in April 2024.