April 2024 sees record high GST collections in India, reflecting economic growth and tax reform impact

The latest GST data paints a picture of a rapidly expanding Indian economy. After accounting for refunds, the net GST revenue for April 2024 stood at ₹1.92 lakh crore, reflecting an impressive 17.1% growth compared to the same period last year

India’s Goods and Services Tax (GST) collections have reached unprecedented levels, underscoring the transformative impact of the country’s tax reform. In April 2024, the GST collections hit a record high of ₹2.10 lakh crore, reflecting a remarkable 12.4% year-on-year growth. This milestone achievement is a testament to the government’s efforts to streamline the tax system and boost revenue.

The latest GST data paints a picture of a rapidly expanding Indian economy. After accounting for refunds, the net GST revenue for April 2024 stood at ₹1.92 lakh crore, reflecting an impressive 17.1% growth compared to the same period last year

Breakdown of the GST Collections

A closer look at the GST collections reveals a positive performance across all components:

– Central Goods and Services Tax (CGST): ₹43,846 crore
– State Goods and Services Tax (SGST): ₹53,538 crore
– Integrated Goods and Services Tax (IGST): ₹99,623 crore, including ₹37,826 crore collected on imported goods
– Cess: ₹13,260 crore, including ₹1,008 crore collected on imported goods

The central government also settled ₹50,307 crore to CGST and ₹41,600 crore to SGST from the IGST collected, translating to a total revenue of ₹94,153 crore for CGST and ₹95,138 crore for SGST for April 2024.

State-wise Performance

The GST report also provides a detailed breakdown of the state-wise GST collections. Some key highlights:

– Haryana, Uttar Pradesh, and Maharashtra recorded the highest growth in GST revenues, at 21%, 19%, and 13% respectively.
– States like Delhi, Chandigarh, and Mizoram also witnessed impressive double-digit growth.
– However, a few states, such as Lakshadweep and Andaman and Nicobar Islands, saw a decline in their GST collections.

Economic Perspective

The GST collections are a testament to the government’s successful implementation of the landmark tax reform. This achievement has been hailed by analysts and investors as a key driver of India’s economic growth. The GST system has helped streamline the tax structure, reduce compliance costs, and boost revenue collection. This, in turn, has provided the government with additional resources to invest in infrastructure, social welfare, and other development initiatives. However, the uneven distribution of GST revenues across states highlights the persistent regional disparities in India’s economic landscape. Addressing these imbalances will be crucial for ensuring more inclusive and sustainable growth 

India’s economic transformation, including the impressive GST collections, has captured global attention. The “India growth story” has become a key narrative, drawing in a surge of excitement from overseas investors. Foreign banks and financial institutions have expressed optimism about the BJP’s performance in the upcoming elections, anticipating policy continuity and further economic reforms.

Analysts have highlighted the potential for India to achieve an average annual GDP growth of 7% between 2024-2028, provided the government implements moderate-to-hard reforms. Yet, the world’s gaze has also highlighted the country’s persistent challenges, such as growing inequality and regional disparities. As India heads to the polls, the question of whether the country’s economic record, including the GST performance, will sway voters remains a subject of intense debate