Thanks to imports, April’s GST collection breaks the two lakh crore mark for the first time

The Goods and Services Tax (GST) revenue in India has surged to unprecedented heights, with a record high of Rs 2.1 lakh crore recorded in April 2024. This milestone represents a 12.4% year-over-year gain, driven by a spike in imports and domestic transactions, the finance ministry said in a May 1 statement.

Despite the difficulties caused by the worldwide epidemic, the government’s GST collection for the same time last year was Rs 1.87 lakh crore, demonstrating a notable increase in economic activity.

“After accounting for refunds, the net GST revenue for April 2024 stands impressively at Rs 1.92 lakh crore, reflecting a remarkable 17.1 percent growth compared to the same period last year,” said the government.

Over the years, the monthly GST collection trend has been steadily increasing. From less than Rs 1 lakh crore per month in its first year of operation, 2017–18, the revenues have seen a significant increase, especially after the pandemic-affected fiscal year 2020–21, averaging Rs 1.51 lakh crore in 2022–23.

The rise in gross revenues in April 2024 of 17.81% over the previous month, when there was a mop-up of Rs 1.78 lakh crore, further underscores the rising trend in GST collection.

The government got Rs 43,846 crore via national GST, Rs 53,538 crore through state GST, and Rs 99,623 crore through integrated GST, which includes Rs 37,826 crore collected on imported products, when breaking down the April 2024 receipts. Furthermore, the GST cess revenues during the same time amounted to Rs 13,260 crore, of which Rs 1,008 crore came from imports.

The central government settled Rs 50,307 crore to central GST and Rs 41,600 crore to state GST from the integrated GST collected in April 2024, demonstrating an efficient distribution mechanism. Following regular settlement, the total revenue for the said month was Rs 94,153 crore for central GST and Rs 95,138 crore for state GST.