India’s GST Collection Soars to ₹1.74 Lakh Crore in June, Up 8% Year-on-Year
In a positive economic indicator, India’s gross Goods and Services Tax (GST) collection for June surged to ₹1.74 lakh crore, marking an 8% increase compared to the previous year. This figure surpasses the ₹1.73 lakh crore collected in May 2024 and demonstrates continued fiscal robustness despite economic challenges.
In a positive economic indicator, India’s gross Goods and Services Tax (GST) collection for June surged to ₹1.74 lakh crore, marking an 8% increase compared to the previous year. This figure surpasses the ₹1.73 lakh crore collected in May 2024 and demonstrates continued fiscal robustness despite economic challenges.
Sources revealed that the gross GST collection for the first quarter of the fiscal year (April-June) totaled ₹5.57 lakh crore, underscoring steady revenue generation. The June collection also represents an 8% rise from ₹1.61 lakh crore recorded in June 2023, reflecting a resilient economic environment.
Notably, Integrated GST (IGST) settlements included ₹39,586 crore towards Central GST (CGST) and ₹33,548 crore towards State GST (SGST), further highlighting the distribution and utilization of tax revenues across central and state governments.
The government has opted to discontinue the official monthly release of GST collection data, indicating a shift in communication strategy. Despite this, the remarkable performance in GST revenue has been attributed to effective enforcement measures, timely audits, and enhanced compliance among businesses.
Experts, including Saurabh Agarwal, Tax Partner at EY India, have emphasized that such robust tax collections underscore a buoyant economy and commendable self-compliance by businesses. There are growing expectations for forthcoming GST reforms aimed at addressing working capital challenges, rationalizing tax rates, easing Input Tax Credit (ITC) restrictions, and implementing sector-specific measures.
The surge in GST collections to ₹1.74 lakh crore in June reaffirms India’s economic resilience and the effectiveness of tax administration measures. As stakeholders anticipate further reforms to streamline taxation policies, the focus remains on sustaining economic momentum and fostering growth across diverse sectors.
Sources By Agencies
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