The gross goods and services tax (GST) collections for June 2024 have risen to Rs 1.74 trillion, representing a year-on-year (Y-o-Y) increase of 7.7 percent, according to sources disclosed to Business Standard. This marks a deceleration in growth compared to the 12.4 percent and 10 percent increases observed in April and May, respectively, with month-on-month figures remaining largely unchanged.
May’s gross GST collections stood at Rs 1.73 trillion, while April witnessed a record high of Rs 2.1 trillion. The revenue accumulated by June has brought the fiscal year-to-date total to Rs 5.57 trillion. Despite the tempered growth, an official remains optimistic, predicting that the upward trend will persist in the coming months with gross collections expected to stay above the Rs 1.6 trillion threshold.
Specific figures for Central and State GST collections were not provided; however, it is known that approximately Rs 39,600 crore was allocated to the central GST account from the Integrated GST (IGST) collection, and states received Rs 33,548 crore from the IGST collection. This data coincides with the seventh anniversary of the GST rollout in India, with the finance ministry deciding to cease the publication of detailed tax collection figures.
“The stabilisation of the GST regime likely underpins the decision to withhold detailed figures,” commented the source.
Pratik Jain, a partner at PwC India, remarked, “Although June’s collection growth appears subdued compared to previous months, the overall GST collection trend has been encouraging.” He suggested that this positive trend might prompt the GST Council to revisit the rate rationalisation initiative, as discussed in their latest meeting.
Another expert highlighted that the figures reflect a resilient economy, bolstered by businesses’ commendable self-compliance. “Effective audits, scrutiny measures, and enforcement by the department have significantly contributed to this success,” observed Saurabh Agarwal, tax partner at EY.
Marking the seventh anniversary of the GST regime, which consolidated 17 local taxes, the finance ministry issued statements lauding the system through social media. The theme of the 7th GST Day, “Sashakt Vyapar Samagra Vikas” (empowered trade, overall growth), was prominently featured. The ministry highlighted the benefits of reduced tax rates on household goods, proclaiming that “#7yearsofGST has brought happiness and relief to every home with lower GST on household appliances and mobile phones.
The GST taxpayer base expanded to 14.6 million in April 2024, up from 10.5 million in April 2018. The ministry also underscored the reduction in compliance burdens for small taxpayers, with the GST Council recommending the waiver of annual return filing for those with an aggregate annual turnover of up to Rs 2 crore in 2023-24.
The Quarterly Returns with Monthly Payment (QRMP) scheme has cut the number of annual returns filed from 24 to 8 for more than 4.4 million small taxpayers. Additionally, the Invoice Furnishing Facility (IFF) has ensured the seamless transfer of input tax credit, further easing the compliance process.