The revenue for February 2023 is 12 per cent higher than the GST revenue in February 2022.
New Delhi:
Goods and Services Tax (GST) collections rose 12 per cent to over Rs 1.49 lakh crore in February as domestic economic activity and consumer spending on costlier goods picked up.
However, the collection is lower than January’s collection of Rs 1.58 lakh crore, which was also the second highest monthly revenue figure since the rollout of GST on July 1, 2017.
“The gross GST revenue collected in February 2023 is Rs 1,49,577 crore, which is 12 per cent higher than the GST revenue collected in the same month last year,” the finance ministry said in a statement on Wednesday.
The ministry said that February is generally a month of 28 days, the collection of GST revenue is relatively less.
During the month, revenue from domestic transactions (including import of services) was higher by 15 per cent while revenue from import of goods was higher by 6 per cent as compared to the same month last year.
KPMG In India Partner, Indirect Tax, Abhishek Jain said this indicates growing self-reliance within the domestic market and is a positive sign for the Indian economy.
According to ministry data, of the gross GST revenue, central GST was Rs 27,662 crore, state GST Rs 34,915 crore, integrated GST Rs 75,069 crore (including Rs 35,689 crore collected on import of goods) and cess Rs 11,931 crore. (including Rs 792 crore collected on import of goods).
Cess collection of Rs 11,931 crore was the highest since the introduction of GST.
Rajat Mohan, senior partner, AMRG & Associates, said enforcement action by tax authorities against pan masala and tobacco manufacturers in the last few months could lead to higher collection of taxes and thereby contribute to the cess pool.
“Indian automakers reported solid domestic sales for vehicles, which also boosted the collection of compensation cess during February,” Mohan said.
ICRA Chief Economist Aditi Nayar said the sequential decline in GST collections in February 2023 is partly due to the January figure being boosted by quarter-end inflows for the month of December, which were dumped into the following month.
On the ‘large gap’ in growth of revenue from import of goods and domestic transactions, Nair said, “GST revenue from import of goods is likely to be lower in January due to sequential and year-on-year contraction in import of goods ” 2023. We expect FY 2023 RE to be completed for CGST collection.”
NA Shah Associates Parag Mehta said the GSTN portal gives authorities a lot of data and information to verify and trace suspicious transactions.
“There has been a substantial increase in consumer spending as well, which has led to a steady rise in collections,” Mehta said.
Tax Connect Advisory Partner Vivek Jalan said the improvement in GST collections is a result of increased audit, assessment and action taken by large entities which subsequently impact the entire supply chain.
Monthly GST revenue has been over Rs 1.4 lakh crore for 12 consecutive months including February.
MS Mani, Partner, Deloitte India, said all large states have registered a significant growth of 10 per cent to 24 per cent as compared to the same month last year, indicating economic growth and steps taken to improve compliance. Getting results.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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