March GST collection soars to US$ 18.804 billion, marks 15% Y-o-Y growth

The GST figure follows the trajectory set by the July 2021 GST collection of US$ 14.566 billion

April 2, 2022

The growth in e-way bills has chiefly led to the significant increase in the GST collections in March.

The GST collections dipped briefly during February, registering a reading of 17.612 billion.

The increase in direct tax revenues as well as import revenues is expected to further push GST collections in April.

Revenue rationalization measures, corporate sales volumes and minimizing GST fraud have increased GST collections .

The Goods and Services Tax (GST) collection for the month of March has been documented at an all-time high of US$ 18.804 billion (Rs 1.42 trillion), overshadowing the previously recorded high of US$ 18.539 billion (Rs 1.40 trillion) in June 2021. Buoyed by the increased rebound in e-way bill generation, the collection amount is above the US$ 14.566 billion (Rs 1.10-trillion) mark since July 2021 despite moderate fluctuations in February. The Ministry of Finance has documented e-way bill collection for the months of January and February at US$ 911 million (Rs 68.8 million) and US$ 915 million (Rs 69.1 million) respectively, presenting a picture of systematic growth and economic recovery. 

Additionally, the Ministry has notified that the GST collection for the last quarter of FY22 was at US$ 18.274 billion (Rs 1.38 trillion). Experts estimate that Net Tax Revenues in relation to devolution to the States has exceeded the Revised Estimate by US$ 11.918 billion (Rs 0.9 trillion) and Gross Tax Revenue has exceeded the Revised Estimate by US$ 29.795 billion (Rs 2.25 trillion). 

Multiple factors have been attributed to the increase in GST collection including the growth in direct tax contributions, prevalence of revenue rationalization measures to correct the inverted duty structure, concerted crackdown on GST fraud, customs duty rebound from the import of gold as well as the  increased volumes of corporate sales. The March GST figures indicate a 15% year-on-year growth and marks a significant increase from the February volume of US$ 17.612 billion (Rs 1.33 trillion)

Experts note that the above mentioned positive trends will continue to sustain the increase in GST collection for the month of April as well.