GST collection at Rs 1.74 trillion in June, but growth slows to 7.7% | Economy & Policy News
The gross goods and services tax (GST) collection for June 2024 stood at Rs 1.74 trillion, marking 7.7 per cent year-on-year (Y-o-Y) growth, an official source disclosed to Business Standard.
This Y-o-Y growth is notably less than the 12.4 per cent and 10 per cent increases recorded in April and May, respectively. Month-on-month figures, too, were flat.
In May this year, the gross GST collection amounted to Rs 1.73 trillion, while April witnessed a record-high GST collection of Rs 2.1 trillion. The June revenue brought the financial year-to-date total to Rs 5.57 trillion, said the source.
“Growth is not as robust as in past months, with various underlying factors contributing to this. Nevertheless, the upward trend is expected to continue in the upcoming months, with gross collections likely to remain above the Rs 1.6 trillion mark,” the official said.
“The GST regime has largely stabilised, which could explain the decision to withhold detailed figures,” said the official cited above.
Pratik Jain, partner at PwC India, stated: “While growth in June’s collection seems lower compared to the previous month, the overall GST collection has shown an encouraging trend over the past few months.” He further said that industry hopes this trend will prompt the GST Council to reinitiate the rate rationalisation exercise, as indicated in the latest Council meeting.
Another expert noted that the figures continue to reflect a buoyant economy, with businesses demonstrating commendable self-compliance. “Timely audits, scrutiny measures, and effective enforcement by the department have all contributed to this success,” commented Saurabh Agarwal, tax partner, EY.
On the seventh anniversary of the GST regime, which subsumed 17 local taxes, the finance ministry issued several statements applauding the regime through social media posts on Monday.
The theme of the 7th GST Day was Sashakt Vyapar Samagra Vikas (empowered trade, overall growth). “With reduced tax rates on household goods after GST implementation, #7yearsofGST has brought happiness and relief to every home through lower GST on household appliances and mobile phones,” the ministry said in a post on X.
The GST taxpayer base increased to 14.6 million in April 2024, from 10.5 million in April 2018.
The ministry also highlighted that the compliance burden for small taxpayers had been reduced. The GST Council recommended waiving the annual return filing requirement for taxpayers with an aggregate annual turnover of up to Rs 2 crore in 2023-24.
The Quarterly Returns with Monthly Payment (QRMP) scheme has reduced the number of returns filed annually from 24 to 8 for more than 4.4 million small taxpayers. The Invoice Furnishing Facility (IFF) ensured the seamless passage of input tax credit, the ministry added.
First Published: Jul 01 2024 | 6:49 PM IST
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