Update on GST Council on March 2024

In March 2024, the Gross Goods and Services Tax (GST) revenue hit a landmark, reaching ₹1.78 lakh crore, marking the second-highest collection ever. This represents an impressive 11.5% year-on-year growth. Notably, domestic transactions contributed significantly to this surge, accounting for a 17.6% increase. The net GST revenue, after refunds, amounted to ₹1.65 lakh crore, indicating a robust growth of 18.4% compared to the same period last year.

FY 2023-24 witnessed remarkable consistency in GST revenue performance, with total gross collections exceeding ₹20 lakh crore, marking an 11.7% increase from the previous fiscal year. The monthly average collection for FY 2023-24 stood at ₹1.68 lakh crore, surpassing the previous year's average of ₹1.5 lakh crore. The net GST revenue, excluding refunds, for FY 2023-24 reached ₹18.01 lakh crore, reflecting a substantial growth of 13.4% compared to the same period last year.

Breakdown of the March 2024 collections is as follows: Central Goods and Services Tax (CGST) recorded ₹34,532 crore, State Goods and Services Tax (SGST) amounted to ₹43,746 crore, Integrated Goods and Services Tax (IGST) totaled ₹87,947 crore (including ₹40,322 crore from imported goods), and Cess collected reached ₹12,259 crore (including ₹996 crore from imported goods).

Similar positive trends were observed throughout FY 2023-24, with CGST totaling ₹3,75,710 crore, SGST reaching ₹4,71,195 crore, IGST amounting to ₹10,26,790 crore (including ₹4,83,086 crore from imported goods), and Cess collected totaling ₹1,44,554 crore (including ₹11,915 crore from imported goods).

Inter-Governmental Settlement for March 2024 saw the Central Government disbursing ₹43,264 crore to CGST and ₹37,704 crore to SGST from the IGST collected. This resulted in total revenues of ₹77,796 crore for CGST and ₹81,450 crore for SGST after regular settlement. Throughout FY 2023-24, the Central Government settled ₹4,87,039 crore to CGST and ₹4,12,028 crore to SGST from the IGST collected.

The Finance Minister urged GST officials to engage stakeholders, improve compliance, streamline processes, and collaborate towards a transparent and efficient tax system. Acknowledging the conference's significance, Shri Chaudhary (Union Minister of State for Finance ) noted its role in addressing indirect tax enforcement issues and devising strategies for future challenges.

Praising GST as a significant reform in India, he lauded its role in simplifying indirect taxation and reducing the effective tax rate, thus enhancing the lives of citizens. He urged GST authorities to focus on facilitating more taxpayers and acknowledged their contribution to realizing the vision of 'Sabka Saath, Sabka Vikas'. He credited the leadership of the Prime Minister and Finance Minister for elevating India's economic status from fragile five to top five. Expressing optimism, he anticipated achieving a monthly GST revenue target of Rs. 2 lakh crore soon.

During his address, Revenue Secretary Shri Sanjay Malhotra underscored the enforcement's pivotal role in ensuring the GST system's success. He outlined key priorities, including targeting high-risk areas, combating tax evasion, balancing enforcement with taxpayer rights, enhancing collaboration between central and state authorities, and gathering feedback for policy and technological enhancements.

Source: https://gstcouncil.gov.in/