According to official data released on Sunday, India’s Goods and Services Tax (GST) collections reached Rs 1.74 trillion in August 2024, up 10% from Rs 1.59 trillion in August 2023. This reflects a positive trend in GST revenues, continuing the growth seen earlier in the year.
By 2024 so far, the total GST Collections have increased by 10.1% to Rs 9.13 lakh crore as compared to Rs 8.29 lakh crore during the same period in 2023. This rebound is indicative of robust economic activity and higher domestic consumption.
In recent months, GST collections have shown variability but have remained robust. In April 2024, collections hit a record high of Rs 2.10 lakh crore, while in July it was Rs 1.82 lakh crore. The figures for May and June were Rs 1.73 lakh crore and Rs 1.74 lakh crore, respectively.
For the fiscal year 2023-24, the total gross GST collections were recorded at Rs 20.18 lakh crore, an increase of 11.7% over the previous fiscal year. The average monthly collection for this period was Rs 1.68 lakh crore, surpassing the previous year’s average of Rs 1.5 lakh crore.
The recent increase in GST collections underscores a resilient economic environment, characterised by strong domestic spending and robust import activity. This is seen as a positive sign for India’s fiscal health and economic recovery, especially amid global uncertainties.
The GST, introduced on July 1, 2017, was designed to simplify the tax system and remove inefficiencies of the previous regime. It replaced a fragmented tax system with a unified approach, significantly reducing the cascading impact of taxes and simplifying compliance. The GST Council, comprising the Union Finance Minister and Finance Ministers of all States, has played a key role in implementing and fine-tuning the GST framework.
Moreover, recent changes in GST rates on several essential items (such as hair oil, toothpaste and home appliances) have led to cost savings for consumers, further enhancing the benefits of the system.
(With contributions from agencies)
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