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The fiscal year 2023-24 began positively as March’s GST collection ₹1.60 lakh crore. While the last month of the fiscal year 2022-23 saw the second-highest collection ever, the first month recorded an all-time collection of over ₹1.67 lakh crore.
Though the Finance Ministry statement has not given a reason for the growth, officials say recovery in the economy, improved consumption and better compliance contributed to increased collection at a consistent pace. One official feel inflation too had a share in high collection. Experts are hopeful of further increase in collection. However, there is no indication about any rate relief to bring down the inflation.
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According to the statement, it is for the fourth time in the current financial year that the gross GST collection has crossed ₹1.5 lakh crore mark, registering the second-highest collection since the implementation of GST. This month witnessed the highest IGST collection ever,” the statement said.
The revenues for March are 13 per cent higher than the GST revenues in the same month last year. During the month, revenues from the import of goods were 8 per cent up, and from the domestic transaction (including import of services) were 14 per cent higher than the revenues from these sources during the same month last year. The return filing during March 2023 has been the highest ever 93.2 per cent of the statement of invoices (in GSTR-1) and 91.4 per cent of returns (in GSTR-3B) of February were filed till March as compared to 83.1 per cent and 84.7 per cent respectively same month last year.
Read more: E-way bill generation dipped to 3-month low in February, GST collection may be impacted in March
The total gross collection for 2022-23 stands at ₹18.10 lakh crore, The gross revenues in 2022-23 were 22 per cent higher than that last year. The average monthly gross GST collection for the last quarter of the FY 2022-23 has been ₹1.55 lakh crore against the average monthly collection of ₹1.51 lakh crore, ₹1.46 lakh crore and ₹1.49 lakh crore in the first, second and third quarters, respectively.
Vivek Jalan, Partner with Tax Connect Advisory, feels the collection figures coming simultaneously with a more than $760 billion export figure marks India’s rise as a global consumer, services provider, and manufacturers hub. “Businesses are also understanding that robust compliance is the way forward under GST and a significant boost in GST Return filing taking the compliance ratio to more than 90 per cent from early 80 per cent shows that Indian business are fast moving into the main-stream. This would enhance the Income Tax Revenues also and lead to overall GDP Growth of the Country,” he said.
Mahesh Jaising, Leader (Indirect Tax) with Deloitte India says the average growth rate is 13 per cent YoY which is close to the guaranteed compensation to State up to June 22. “With the growth in economic activity and increased focus on GST analytics-based audits, the trend should see upward trajectory in the coming months. Also, with the new FTP being rolled out from today, we have to wait and watch the impact on the import-export which is expected to have a role in GST collections too,” he said.
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