GST collections hit all-time high of Rs 2.10 lakh crore in April 2024.

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In April, India’s Goods and Services Tax (GST) collection hit a historic high, reaching Rs 2.10 lakh crore, marking a notable 12.4 percent increase from the previous year, according to data released by the Ministry of Finance. The surge in revenue was primarily attributed to diligent efforts in tax compliance and the crackdown on fraudulent invoicing by states such as Uttar Pradesh, Punjab, Haryana, and Delhi.

The notable growth in GST revenue was fueled by both domestic collections, which soared by 13.4 percent compared to the same period last year, and collections from imports, which saw an 8.3 percent increase. This April’s collection marked the highest since the inception of the GST tax regime in July 2017. After accounting for refunds, the net GST revenue for April 2024 stood at Rs 1.92 lakh crore, indicating a substantial 17.1 percent surge from the previous April.

Saurabh Agarwal, a tax partner at EY India, hailed the achievement of surpassing the Rs 2 lakh crore milestone in GST collection for April 2024, underscoring the resilience of the tax system amidst evolving economic landscapes. He emphasized the positive performance across all segments of GST collection, including Central GST, State GST, Integrated GST, and cess, which collectively bolstered the fiscal position.

A breakdown of the April 2024 GST collection revealed that Central GST accounted for Rs 43,846 crore, State GST for Rs 53,538 crore, Integrated GST for Rs 99,623 crore, and cess for Rs 13,260 crore. Maharashtra emerged as the top contributor with Rs 37,671 crore, reflecting a 13 percent increase from the previous April, followed by Karnataka with Rs 15,978 crore (9 percent growth) and Gujarat with Rs 13,301 crore (13 percent growth).

Significantly, several large states, particularly in northern India, witnessed accelerated growth in GST collection. Delhi and Bihar each experienced a notable 23 percent increase from the previous April, while Punjab and Haryana recorded a commendable 21 percent growth.

Gunjan Prabhakaran, partner and leader of indirect tax at BDO India, attributed the record-high GST collection in April 2024 to robust growth in collections from northern states like Uttar Pradesh, Punjab, Haryana, and Delhi. She highlighted that April typically sees heightened collections as it reflects the economic activity of the preceding month, March, which marks the end of the financial year.