Home   »   Economy and Finance   »   India's Fiscal Progress: GST Collections Surge...

India’s Fiscal Progress: GST Collections Surge to Record High in FY 2023-24

Finance Minister Nirmala Sitharaman reported a consistent upward trend in India’s Goods and Services Tax (GST) collection, emphasizing the fiscal year’s remarkable achievements in a Lok Sabha session.

Key Figures

  • GST collection surpassed the Rs 1.50 lakh crore mark every month in the current fiscal year.
  • April 2023 recorded a historic high, reaching Rs 1.87 lakh crore in GST collection.
  • The average gross monthly GST mop-up for FY 2023-24 stands at Rs 1.66 lakh crore, reflecting an 11% YoY increase from the previous fiscal year.
  • Monthly average GST collection for 2022-23 showed a substantial growth of 30%, following a 22% YoY increase in 2021-22.
  • In 2020-21, the average monthly GST collection was Rs 94,734 crore.

Reforms and Compliance

  • The government, guided by GST Council recommendations, implemented various reforms to enhance compliance and boost GST collection.
  • Structural changes included recalibrating GST rates to address inverted duty structures and reducing exemptions.
  • Measures to improve tax compliance encompassed mandates for e-way bills, ITC matching, e-invoicing, and leveraging artificial intelligence and machine-based analytics.
  • Aadhaar authentication for registration and actions against non-filers and stop filers were integral to the compliance strategy.

Technological Enhancements

  • The government adopted system-based analytical tools, sharing red flag reports with tax authorities at both central and state levels to target tax evaders effectively.

GST Appellate Tribunal and Pending Appeals

  • On the recommendation of the GST Council, State Benches of GST Appellate Tribunal were constituted by the central government.
  • As of October 31, 2023, 14,897 appeals regarding tax demands raised by Central GST authorities were pending, signifying an increase from the 11,899 appeals reported on March 31, 2023.

Important Questions Related to Exams

Q: What is the average monthly GST collection in FY 2023-24?

A: The average monthly GST collection is Rs 1.66 trillion, with a record high of Rs 1.87 trillion in April 2023.

Q: How does this compare to previous fiscal years?

A: It’s an 11% YoY increase from the previous fiscal year, exceeding Rs 1.50 trillion monthly in 2022-23.

Q: What reforms are being implemented for GST compliance?

A: Reforms include GST rate calibration, reduction of exemptions, and tech-driven measures like e-way bills and AI-based analytics.

Q: What’s the government’s approach to pending appeals?

A: The government, following GST Council recommendations, has formed State Benches for dispute resolution. As of October 2023, 14,897 appeals are pending, up from 11,899 in March 2023.

Find More News on Economy Here


India's Fiscal Progress: GST Collections Surge to Record High in FY 2023-24_4.1

Foxconn's $1.5 Billion Investment Sparks Technological Boom in India_80.1