FY24 GST revenue surpasses Rs 20 lakh crore, March hits second highest monthly collections

The Gross Goods and Services Tax (GST) revenue for March 2024 soared to Rs 1.78 lakh crore, marking the second-highest collection ever recorded. The impressive figure represents 11.5 per cent year-on-year growth, underlining the resilience of the country's tax system.

Driving the surge was an increase in GST collection from domestic transactions, which saw a growth of 17.6 per cent. Furthermore, when considering GST revenue net of refunds, March 2024 witnessed growth rate of 18.4 per cent compared to the same period last year.

The fiscal year 2023-24 has been characterised by strong and consistent performance, with total gross GST collection exceeding Rs 20 lakh crore, marking 11.7 per cent increase compared to the previous year. The average monthly collection for the fiscal year stood at Rs 1.68 lakh crore, surpassing the previous year's average, indicating sustained momentum in revenue generation.

Citing consistent positive performance as driver of sustainable growth for the country, Saurabh Agarwal, Tax Partner, EY said, "The March collection of Rs 1.78 lakh crore, representing the second-highest monthly total, signifies a robust economic trajectory for India. This achievement, marked by an impressive 11.5 per cent year-on-year growth, underscores the resilience of our economy in the face of global challenges. Furthermore, the annual gross revenue surpassing Rs 20 lakh crore, with a noteworthy 11.7 per cent increase, strengthens India's position as a prominent player in the global marketplace. This consistent positive performance fosters confidence in our fiscal policies, which demonstrably drive sustainable growth. Looking ahead, the prospects for heightened GST collections in the forthcoming quarter remain promising, particularly in light of the upcoming General Elections.” 

Breaking down the March 2024 collections, Central Goods and Services Tax (CGST) amounted to Rs 34,532 crore, State Goods and Services Tax (SGST) stood at Rs 43,746 crore, and Integrated Goods and Services Tax (IGST), including Rs 40,322 crore collected on imported goods, reached Rs 87,947 crore. Additionally, Cess collections amounted to Rs 12,259 crore, including Rs 996 crore from imported goods.

Similar positive trends were observed in the entire FY 2023-24 collections, with CGST totalling Rs 3,75,710 crore, SGST reaching Rs 4,71,195 crore, IGST amounting to Rs 10,26,790 crore (including Rs 4,83,086 crore from imported goods), and Cess collections standing at Rs 1,44,554 crore (including Rs 11,915 crore from imported goods).

In terms of inter-governmental settlement, the Central Government disbursed Rs 43,264 crore to CGST and Rs 37,704 crore to SGST from the IGST collected in March 2024, translating to a total revenue of Rs 77,796 crore for CGST and Rs 81,450 crore for SGST after regular settlement. For the entire FY 2023-24, the central government settled Rs 4,87,039 crore to CGST and Rs 4,12,028 crore to SGST from the IGST collected, further bolstering state and central finances.