GST collection reaches Rs 1.78 lakh crore in March 2024, aided by strong domestic demand

New Delhi, Apr 1: Domestic Transactions Drive 11.5% Year-on-Year Increase in Indirect Tax Revenue

The Goods and Services Tax (GST) collection for the month of March 2024 witnessed substantial growth, registering the second highest revenue since the rollout of the nationwide indirect tax system. As per official figures released by the Ministry of Finance, the gross GST revenue stood at a impressive Rs 1.78 lakh crore for March, representing an 11.5% increase compared to the collection in the same period last year.

Remarkably, the surge was largely driven by a significant 17.6% year-on-year rise in GST collection from domestic transactions. Transactions within the country exhibited robust growth, boosting the overall tax collection. For the full financial year 2023-24 as well, GST mop-up surpassed expectations, with gross collection touching Rs 20.14 lakh crore – an 11.7% jump over the previous fiscal. The average monthly revenue stood at a healthy Rs 1.68 lakh crore for FY24.

The only occasion with a higher GST collection was in April 2023, when a unprecedented Rs 1.87 lakh crore was collected after implementation of revised GST rates. Net GST revenue after refunds for March 2024 also recorded an impressive 18.4% increase to Rs 1.65 lakh crore compared to March 2023. The consistent growth in collections even during the year indicates economic recovery and expansion of the tax base. The robust indirect tax collection will aid the fiscal position of both central and state governments.