GST collections surge to record high in current financial year

Goods and Services Tax (GST) collections have reached unprecedented levels in the ongoing fiscal year, showcasing a consistent upward trajectory since the implementation of GST on July 1, 2017.

In a written response to a Lok Sabha query, Finance Minister Nirmala Sitharaman revealed that the average gross monthly GST collection for the fiscal year 2023-24 stands at Rs 1.66 lakh crore. This marks an impressive 11 per cent increase compared to the same period in the previous financial year.

The fiscal year 2022-23 witnessed a robust performance, with the monthly average GST collection exceeding Rs 1.50 lakh crore, a notable surge from the previous fiscal year's monthly average of Rs 1.23 lakh crore. The fiscal year 2020-21 recorded an average monthly collection of Rs 94,734 crore.

April 2023 saw a historic high in GST collections, reaching an unprecedented Rs 1.87 lakh crore.

Minister of State for Finance Pankaj Chaudhary highlighted the remarkable year-on-year growth, with a 30% increase in the monthly average gross GST collection for 2021-22 and a 22% growth for 2022-23.

The government, in collaboration with the GST Council, has undertaken substantial reforms to enhance GST compliance and boost collections. These reforms include recalibrating GST rates, implementing measures to improve tax compliance such as e-way bills, ITC matching, and e-invoice mandates, as well as deploying advanced technologies like artificial intelligence and machine-based analytics. Aadhaar authentication for registration and targeted actions against non-filers and stop filers are also part of the comprehensive strategy.

Moreover, the central government, acting on the GST Council's recommendations, has established State Benches of the GST Appellate Tribunal to address appeals related to tax demands. As of October 31, 2023, the number of pending appeals stands at 14,897, indicating a rise from 11,899 appeals reported as of March 31, 2023.

India's impressive GST performance reflects ongoing efforts to streamline tax administration, encourage compliance, and ensure sustainable revenue growth.