GST Collection Soars by 12.5% in February 2024
According to an official statement released on Friday, Gross Goods and Services Tax (GST) collection in February 2024 reached Rs 1,68,337 crore, marking a substantial 12.5% increase compared to the same month in 2023. This notable growth was propelled by a 13.9% rise in GST from domestic transactions and an 8.5% increase in GST from imported goods, as stated by the finance ministry.
Key Highlights:
| Category | Amount (in crore) |
|---|---|
| Central Goods and Services Tax (CGST) | Rs 31,785 |
| State Goods and Services Tax (SGST) | Rs 39,615 |
| Integrated Goods and Services Tax (IGST) | Rs 84,098 (including Rs 38,593 from imported goods) |
| Cess | Rs 12,839 (including Rs 984 from imported goods) |
The central government settled Rs 41,856 crore to CGST and Rs 35,953 crore to SGST from the IGST collected. This settlement resulted in a total revenue of Rs 73,641 crore for CGST and Rs 75,569 crore for SGST after regular settlement, according to the statement.
Insights and Analysis
Abhishek Jain, partner and national head (indirect tax) at KPMG in India, expressed, “A strong 12.5% growth in overall GST collections and specially 13.9% growth in GST collections from domestic transactions have added to the cheer of 8.4% growth in GDP in Q3. This collectively shows the robustness of the Indian economy and domestic consumption story going strong.”
Additionally, data released by the finance ministry on February 29 revealed that the government’s net tax revenues increased by 11%, while non-tax revenues surged by 46%, fueled by the RBI dividend. This growth was amidst a modest 1.4% increase in revenue expenditure and a significant 26.5% YoY expansion in capital expenditure.
Conclusion
The notable surge in GST collection for February 2024 underscores a positive economic trajectory. With robust contributions from both domestic transactions and imports, coupled with favorable expert analyses, it reflects the resilience and strength of the Indian economy.