Fiscal year-end on a good note: March 2024 GST collections rise to second-highest worth Rs 1.78 lakh crore

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• Apr 1, 2024 | Srijani Purkayastha

The primary cause of this rise was a notable 17.6% increase in GST collection from domestic transactions.....

Digital desk: The total Goods and Services Tax (GST) collections for March reached a record-breaking figure of Rs. 1.78 lakh crore, which is expected to have a positive impact on the economy. Based on an annual comparison, the Ministry of Finance reports an increase of 11.5%. 

The primary cause of this rise was a notable 17.6% increase in GST collection from domestic transactions. After refunds, the net GST revenue for March 2024 was Rs. 1.65 lakh crore, an increase of 18.4% over the same time the previous year.

Over Rs. 20 lakh crore in gross GST revenue was collected for the entire year, an increase of 11.7% from the previous fiscal year. According to the statement, the average monthly collection for FY 2023–24 was Rs 1.68 lakh crore, which was higher than the average of Rs 1.5 lakh crore for the previous fiscal year.

As of March 2024, the current fiscal year's net GST revenue, excluding refunds, stood at Rs 18.01 lakh crore, rising 13.4% from the same time the previous year.

Positive trends were observed across various components of GST collection for March 2024. The breakdown includes:

• Central Goods and Services Tax (CGST): Rs 34,532 crore
• State Goods and Services Tax (SGST): Rs 43,746 crore
• Integrated Goods and Services Tax (IGST): Rs 87,947 crore, including Rs 40,322 crore collected on imported goods
• Cess: Rs 12,259 crore, including Rs 996 crore collected on imported goods

Similar positive trends were evident in the overall collections for FY 2023-24:

• Central Goods and Services Tax (CGST): Rs 3,75,710 crore
• State Goods and Services Tax (SGST): Rs 4,71,195 crore
• Integrated Goods and Services Tax (IGST): Rs 10,26,790 crore, including Rs 4,83,086 crore collected on imported goods
• Cess: Rs 1,44,554 crore, including Rs 11,915 crore collected on imported goods

In March 2024, the Central Government settled Rs 43,264 crore to CGST and Rs 37,704 crore to SGST from the IGST collected. After routine settlement, this led to total collections of Rs 81,450 crore for SGST and Rs 77,796 crore for CGST. From the IGST collected, the central government paid Rs 4,87,039 crore to the CGST and Rs 4,12,028 crore to the SGST for the fiscal year 2023–2024.

The trends in monthly gross GST receipts are seen in the above chart. 

Strong domestic economic growth is shown by a 17.6% increase in collection from domestic transactions in March, which significantly boosts overall increased collections, according to Abhishek Jain, Indirect Tax Head & Partner, KPMG. Additionally, he notes that this year's average monthly collections have increased by about 18000 crores, indicating a strong growth story and recovery.