GST Collection Soars: Finance Minister Sitharaman Highlights Record-Breaking Trends and Reforms
Finance Minister Nirmala Sitharaman disclosed on December 4 that the Goods and Services Tax (GST) collection has been on an upward trajectory since its inception on July 1, 2017. In response to a query in the Lok Sabha, she provided a comprehensive overview of the current fiscal's performance, emphasizing the remarkable average gross monthly mop-up of ₹1.66 lakh crore.
- Consistent Growth: Minister Sitharaman stated that the GST collection has exhibited a consistent upward trend on a year-on-year basis since the implementation of GST in 2017. The average gross monthly GST collection in the current fiscal, FY 2023-24, stands at ₹1.66 lakh crore, marking an impressive 11% increase compared to the same period in the previous financial year.
- Record-Breaking Months: The Finance Minister reported that in the ongoing fiscal, the GST collection has surpassed the ₹1.5 lakh crore mark every month. Notably, April 2023 witnessed a historic high, with the collection reaching an unprecedented ₹1.87 lakh crore.
- Yearly Comparisons: Providing a broader context, Sitharaman compared the average monthly GST collection in recent years. In FY 2022-23, the monthly average exceeded ₹1.5 lakh crore, a substantial increase from ₹1.23 lakh crore in 2021-22 and ₹94,734 crore in 2020-21.
- Year-on-Year Growth: Minister of State for Finance Pankaj Chaudhary, responding to a separate question, highlighted the year-on-year growth in gross GST collection. The monthly averages for 2021-22 and 2022-23 showed impressive growth rates of 30% and 22%, respectively.
- Reforms Driving Compliance: Chaudhary underscored the government's commitment to GST reforms. These include structural changes such as GST rate calibration, reduction of exemptions, and measures to enhance tax compliance, such as e-way bill mandates, ITC matching, and e-invoice mandates.
- Technological Measures: The Minister outlined the integration of technological solutions like artificial intelligence and machine-based analytics, as well as Aadhaar authentication for registration. System-based analytical tools and red flag reports are being employed to identify and take action against tax evaders.
- GST Appellate Tribunal: In response to another question, Chaudhary informed that State Benches of GST Appellate Tribunal have been constituted based on the GST Council's recommendation.
- Pending Appeals: Chaudhary also addressed the issue of pending appeals related to tax demands. As of October 31, 2023, there are 14,897 pending appeals, reflecting an increase from 11,899 as of March 31, 2023.
In conclusion, these revelations paint a positive picture of the GST landscape, showcasing consistent growth and the government's proactive approach through various reforms and technological interventions to ensure compliance and increase GST collection. As the fiscal year progresses, stakeholders will be closely watching further developments in the GST framework.