GST collections hit Rs 1.78 trillion in March, the second highest ever
The financial year 2023-24 (FY24) concluded on a high note for the Indian economy, marked by significant milestones in goods and services tax (GST) collections, car sales, and Unified Payments Interface (UPI) transactions.
In March, GST collections, net of refunds, surged by 18.4 percent to reach Rs 1.65 trillion, following a 13.6 percent year-on-year increase in February to Rs 1.51 trillion. Cumulatively, FY24 witnessed net collections amounting to Rs 18.01 trillion, reflecting a notable 13.4 percent growth compared to the previous year.
Gross GST collection, before refunds, also experienced robust growth, increasing by 11.5 percent to touch Rs 1.78 trillion in March FY24, despite facing a slight setback due to weaker integrated GST (IGST) on imports of goods.
The automotive sector contributed significantly to the positive economic outlook, with Indian carmakers achieving record sales of 4.23 million domestic passenger vehicles in FY24, marking an impressive 8.74 percent year-on-year increase.
Furthermore, UPI transactions in India witnessed remarkable growth, with volumes rising by 57 percent and value by 44 percent in FY24 compared to the previous financial year. Notably, gross GST collection hit its peak at Rs 1.87 trillion in April FY24.
The total GST collection before refunds reached Rs 20.18 trillion in FY24, showcasing a growth rate of 11.7 percent over the previous financial year. Domestic transactions emerged as the primary driver of GST collection in March, with gross receipts witnessing a notable 17.6 percent increase.
However, the import of goods saw a decline in integrated GST collection due to softening commodity prices, with receipts before refunds dropping by 5.1 percent to Rs 40,322 crore.
Saurabh Agarwal, tax partner at EY, highlighted the impressive 11.5 percent year-on-year growth rate in March GST collection, emphasizing the resilience of the Indian economy amidst global challenges.
Despite the overall positive trend, gross cess on imported goods experienced a modest growth of 3.7 percent at Rs 996 crore during the month.
For March, Rs 77,706 crore was collected as gross central GST (CGST), and Rs 81,450 crore as gross state GST (SGST), indicating a balanced contribution from both segments.
In summary, the economic indicators for FY24 reflect a resilient and growing Indian economy, driven by robust GST collections, thriving automotive sales, and burgeoning digital transactions through UPI. Despite challenges, these achievements underscore the strength and potential of India’s economic landscape.
