GST Collections in FY 2023-24
The Goods and Services Tax (GST) collection for the fiscal year 2023-24 is set to exceed ₹20 lakh crore, showcasing robust economic activity and ease of compliance driven by technology.
Here are the key points from the report:
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Expected Surpassing of ₹20 Lakh Crore Mark:
- GST collection for FY 2023-24 is expected to surpass ₹20 lakh crore with an annualized growth rate of approximately 12%. This indicates a significant increase in revenue compared to previous fiscal years.
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Factors Driving Growth:
- Heightened economic activity and improved compliance due to technological advancements are cited as key factors contributing to the increase in GST collections.
- Robust collections are anticipated for GST cess as well, with total revenue likely to reach around ₹1.45 lakh crore in the 2023-24 period.
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Possibility of Early End to GST Cess:
- The government had extended the GST cess deadline to March 31, 2026, to retire debt taken during the pandemic.
- However, with robust collections, there’s a possibility of the cess being rolled back earlier than the set deadline.
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March 2024 Collection Estimates:
- GST collections for March 2024 are expected to significantly exceed ₹1.60 lakh crore, potentially pushing total gross revenues for the fiscal year past the ₹20 lakh crore mark.
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Previous Performance and Economic Indicators:
- In the last financial year, GST collections were over ₹18 lakh crore, and before that, it was ₹14.83 lakh crore, indicating a steady growth trend.
- The performance of GST collections reflects the robustness of the domestic economy.
- Revenue growth in GST is seen as an indicator of economic performance.
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Macroeconomic Impact:
- The expected record-high GST collections reaffirm the macroeconomic data on GDP growth and other key economic parameters, indicating positive trends in the fiscal year.
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Expert Opinions:
- Deloitte India partner MS Mani highlights that robust GST collections align with the positive macroeconomic indicators, indicating overall economic growth and stability.
In summary, the anticipated record-high GST collections for FY 2023-24 underscore the resilience of the Indian economy and effective tax administration.
The growth in GST revenue reflects improved compliance, increased economic activity, and positive macroeconomic trends.