GST collections reach INR 1.6 trn in March 2023: Finance Ministry

Goods and Services Tax collections increased by 12.7% to INR 1.6 trillion in March 2023, the second-highest monthly mop-up, according to a report from the Ministry of Finance. 

The Integrated Goods and Services Tax (IGST), which is charged on inter-state sales and imports, reached a new high of INR 82,907 crore, surpassing the previous record of INR 81,939 crore set in April 2022. Despite slower growth in import revenue, the March collections, which cover transactions in February, indicate robust domestic demand.

According to the report, the revenue from domestic transactions, including imported services, is 14% higher compared to the same month last year, while the revenue from import of goods increased by 8%. In addition, the cess on imported luxury and sin goods decreased by 2%.

For the full fiscal year, the GST collections are expected to reach nearly INR 18.1 trillion, a 22% increase from the previous year, with a monthly average of over INR 1.5 trillion. The government is aiming to increase this figure to over INR 1.6 trillion per month during the current financial year. Among the states and union territories, Mizoram saw the highest growth rate of 91%, while Ladakh was the only one to experience a decline.

The finance ministry reported that the returns filed in March were the highest ever. Experts said that March 2023 witnessed the second-highest monthly GST collection and a 22% increase in GST collections over the previous year demonstrates the growing trend of the Indian economy. They further highlighted the highest-ever compliance rate of 91.4% in March as a sign of successful tax compliance and evasion prevention efforts by revenue authorities and businesses.

Source: Times of India