Gross GST revenue rose by 12.5% year-on year to £16.8 billion in February, sustaining the strong momentum in the receipts as growth remains robust. Average monthly gross GST collection for 2023-24 is £16.7 billion, exceeding the £15 billion for 2022-23, according to a finance ministry statement. This was the fourth highest monthly collection.
The growth in Feb was driven by 13.9% rise in GST collection from domestic transactions and 8.5% increase in GST mop-up from import of goods. GST revenue net of refunds for Feb 2024 was over £15 billion, a growth of 13.6% over same period last year.
The statement said that gross GST collection reached £184 billion for 2023-24, up 11.7% year-on-year. It said that GST revenue net of refunds as of Feb 2024 for the current fiscal year was £164 billion, which is a growth of 13% over the mop-up for same period last year. “Overall, the GST revenue figures demonstrate continued growth momentum and positive performance,” according to the statement.
Several measures taken by the government have helped plug loopholes and raised compliance, while robust economic growth has also helped in strong performance. Experts said the trend in collection reflected the strong consumption momentum. “Coming on the back of robust GDP numbers for the third quarter, the impressive GST collection figure is reflecting the broad-based consumption increase across sectors as GST is a consumption tax,” said M S Mani, partner at consulting firm Deloitte India.