Record GST revenue collection good sign for economy, say experts; suggest forward-looking reforms
May 01, 2024
New Delhi [India], May 1 : With India registering the highest GST revenue collection for April this year at Rs 2.10 lakh crore, experts have said record collection has set the stage for pursuing forward-thinking reforms and signifies a potential turning point in the GST collection trajectory.
"The GST collections at Rs 2.10 lakh crore in April 2024 have not only set a new record, it has also recorded a growth rate of 15.5 per cent, which is almost double the nominal GDP growth rate 9.1 per cent" said Mahesh Jaising, Partner, Deloitte India.
"The continued consistent buoyancy in GST collections along with this record collection, has set the stage for pursuing forward-thinking reforms under GST 2.0," he added.
The industry experts also highlighted that the increased collections, primarily from transactions in goods and services during March 2024, signify a potential turning point in the GST collection trajectory.
"While some part of the increased collections are attributable to the financial year end upswing, it is also reflective of the significant improvements in GST compliance by businesses. These collections which relate to transactions in goods and services during the month of March could be the tipping point in the GST collection trajectory," said MS Mani, Partner, Deloitte India.
The experts also highlighted the record GST collections as a reflection of the growth momentum in economic activities, enhanced tax compliance, and efficiency in tax administration. They credited technology transformation, timely issue of circulars by the GST Council, and effective measures to curb tax evasion for contributing to this revenue growth.
"The GST collection exceeding Rs 2 lakh crore is truly remarkable and reminiscent of an uptick in economic growth. What is more heartening to see is that the net revenue increase is about 15 per cent on a year-on-year basis. This is encouraging sign for the economy," said Rajat Bose, Partner at Shardul Amarchand Mangaldas & Co.
Ministry of Finance on Tuesday announced that the Gross Goods and Services Tax (GST) collections surged to a record high of Rs 2.10 lakh crore in April. The GST collection has also registered a 12.4 per cent year-on-year growth.
According to Finance Ministry release, the growth was propelled by a robust uptick in both domestic transactions, which rose by 13.4 per cent, and imports, witnessing an 8.3 per cent spike.
