In March 2024, India’s Goods and Services Tax (GST) collections reached a towering US$ 21.3 billion, securing its position as the second-highest revenue achievement in the nation’s history and showcasing a substantial year-on-year growth of 11.5%. This remarkable upswing was predominantly propelled by an impressive 17.6% increase in GST revenue collected from domestic transactions, illustrating a vigorous domestic market and an uptick in internal trade activities.
Following the adjustments for refunds, the net GST revenue for the month of March 2024 escalated to US$ 19.8 billion. This figure represents an outstanding 18.4% increase over the revenue collected during the same period in the previous year, signifying not only the effectiveness of the GST system but also the resilience and growth of India’s economy.
The fiscal year 2023–24 witnessed consistent and robust growth in GST collections, with the total gross GST collection surpassing US$ 239.8 billion. This total indicates a commendable 11.7% increase compared to the fiscal collections of the preceding year. Reflecting on the average monthly collection, the fiscal year boasted an average of US$ 20.2 billion, significantly outperforming the previous year’s monthly average of US$ 18 billion. Such metrics underscore the sustained strength and expansion of the GST revenue base throughout the fiscal year.
By the close of March 2024, the net GST revenue for the fiscal year (FY24) was reported to be US$ 216 billion, marking a robust growth of 13.4% over the figures from the corresponding period of the last fiscal year. This growth not only reflects the effectiveness of India’s GST system in broadening the tax base but also showcases the proactive measures taken by the government to enhance compliance and streamline tax collection processes.
The upward trend in GST revenue was mirrored across its various components, including the Central GST (CGST), State GST (SGST), and Integrated GST (IGST). Each of these segments experienced significant growth, contributing to the overall increase in GST revenue. Moreover, the effective mechanism of inter-governmental settlements played a pivotal role in bolstering the revenue figures. The Central Government undertook substantial settlements of CGST and SGST out of the collected IGST, facilitating an equitable distribution of revenue between the central and state governments.
A state-wise breakdown of GST collections for March 2024, in comparison to the figures from March 2023, along with post-settlement GST revenue figures up until March 2024, provides a granular view into the distribution and growth trends of GST revenue across various states. This comparative analysis reveals a widespread improvement in revenue collection throughout the country, indicating a uniformly positive impact of GST across different regions.
The fiscal year 2023–24 stands as a testament to the effectiveness of India’s GST framework, not just in enhancing tax compliance and collection but also in fostering a conducive environment for economic growth and stability. The consistent rise in GST revenue, along with the broad-based improvement across different states, points towards a resilient and thriving economic landscape, setting a promising precedent for future fiscal years.
