India’s Goods and Services Tax (GST) collections have reached a new high, recording a growth of 12.7% in the month of January, 2023. According to the latest figures released by the Ministry of Finance, the country has collected GST revenue of Rs. 1.59 lakh crore in January, which is the second highest monthly collection ever.
The increase in the GST collection is seen as a positive sign for the country’s economy, as it reflects the resilience and strength of the domestic economic activity, even amid the global economic slowdown. The GST collections have remained above Rs. 1.4 lakh crore for 11 successive months now, which is indicative of the steady growth in the economy.
The GST collections in January 2023 have seen a growth of 12.7% compared to the same period in the previous year. The total number of GST returns filed for the month of January 2023 stood at 11.92 crore, which is also a record high.
The gross GST revenue collected in the month of January 2023 till 5:00 PM on 31.01.2023 is Rs 1,55,922 crore of which CGST is Rs 28,963 crore, SGST is Rs 36,730 crore, IGST is Rs 79,599 crore (including Rs 37,118 crore collected on import of goods) and cess is Rs 10,630 crore (including Rs 768 crore collected on import of goods).
The Government has settled Rs 38,507 crore to CGST and Rs 32,624 crore to SGST from IGST as regular settlement. The total revenue of Centre and the States in the month of January 2023 after regular settlement is Rs 67,470 crore for CGST and Rs 69,354 crore for the SGST.
The revenues in the current financial year upto the month of January 2023 are 24% higher than the GST revenues during the same period last year. The revenues for this period from import of goods are 29% higher and from domestic transaction (including import of services) are 22% higher than the revenues from these sources for the same period last year.
This is for the third time, in the current financial year, GST collection has crossed Rs 1.50 lakh crore mark. The GST collection in January 2023 is the second highest next only to the collection reported in April 2022. During the month of December 2022, 8.3 crore e-way bills were generated, which is the highest so far and it was significantly higher than 7.9 crore e-way bills generated in November 2022.
Over the last year, various efforts have been made to increase the tax base and improve compliance. The percentage of filing of GST returns (GSTR-3B) and of the statement of invoices (GSTR-1), till the end of the month, has improved significantly over years. The trend in return filing in the Oct-Dec quarter over last few years is as shown in the graph below. In the quarter Oct-Dec 2022, total 2.42 crore GST returns were filed till end of next month as compared to 2.19 crore in the same quarter in the last year.
The GST collections are an important indicator of the overall health of the economy, as it is a tax levied on the consumption of goods and services. The collection of GST revenue is used to fund various government programs and schemes, which in turn helps to boost the economy.
The increase in GST collections can be attributed to several factors, such as the strong recovery in the manufacturing and service sectors, the government’s efforts to boost domestic consumption through various stimulus measures, and the increased compliance by taxpayers due to the strict monitoring and enforcement measures.
The GST collections are also expected to rise in the coming months, as the government is set to roll out a new version of the GST return filing system, which is expected to make the process more efficient and user-friendly. The new system will also have additional features, such as the auto-population of the invoice details, which will reduce the time and effort required by the taxpayers.
The GST collections have been a key focus area for the government, as it has a significant impact on the country’s fiscal deficit and the overall economic growth. The government has been taking several steps to improve the compliance and collection of GST, such as the implementation of e-invoicing, e-way bill, and the GST network.
The increase in GST collections is a positive sign for the country’s economy, as it reflects the robust domestic economic activity and the government’s efforts to boost consumption and compliance. The steady growth in the GST collections for 11 successive months is indicative of the resilience of the Indian economy and its ability to withstand the global economic slowdown. The government should continue to focus on improving the compliance and collection of GST, as it is crucial for the country’s fiscal stability and economic growth.
