GST COLLECTIONS

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Context

• India’s Goods and Services Tax (GST) revenues grew 13% in March, to record the second-highest monthly collections of ₹1.6 lakh crore from the indirect tax.

Details

• Gross GST collections for 2022-23 are 22% higher than in 2021-22 at ₹18.1 lakh crore, reflecting an average gross monthly collection of almost ₹1.51 lakh crore.
• The growth in GST collections in March was the fastest so far in 2023.
• March’s collections were only eclipsed previously in April 2022, when collections were ₹1,67,540 crore.

Rising compliance

• Integrated GST collections hit a record high of ₹82,907 crore in March 2023, including ₹42,503 crore collected on the import of goods.
• Indicating an uptick in compliance levels, returns filed by taxpayers during March have been the highest ever.
• The higher compliance trends under the GST regime could also help enhance the direct tax revenues to an extent.

State-wise GST collections

• The GST collections in March largely reflect transactions undertaken in the month of February.
• The revenue share between the Centre and the States during the month, after settling IGST collections, is ₹62,954 crore for the Central GST and ₹65,501 crores for the State GST.
• As many as 16 States and the Union Territory of Jammu and Kashmir reported higher growth from domestic transactions during March than the national average of 14.4%, including Bihar and J&K (both at 29.4%), Karnataka (18.4%), Uttar Pradesh, Rajasthan, Odisha and Tamil Nadu (all around 15%).
• Among the other States, the lowest growth rate was recorded in Himachal Pradesh (8.1%) and Gujarat (8.3%).
• Revenues from Andhra Pradesh were up 11.3%, with Maharashtra (11.8%), Kerala (12.7%) and Telangana (13.25%) and West Bengal (13.9%) recording higher growth.

Tribunal to be set up

• While GST collections have been consistently buoyant, which is reflective of a vibrant economy, taxpayers do face challenges at times, specifically in areas related to input tax reconciliations in the absence of an appellate tribunal.
• With the GST Appellate Tribunal likely to be set up this year, tax experts believe this could further stabilize the regime.

Must-Read Articles:

GST: https://www.iasgyan.in/daily-current-affairs/gst-5

Performance of GST in the past few years: https://www.iasgyan.in/daily-current-affairs/goods-and-services-tax-gst

GST Tribunal: https://www.iasgyan.in/daily-current-affairs/gst-appellate-tribunal

GST Compensation: https://www.iasgyan.in/daily-current-affairs/gst-compensation-29#:~:text=Finance%20Minister%20Nirmala%20Sitharaman%20said,General's%20(AG)%20authenticated%20certificate.

PRACTICE QUESTION Q. The stabilization of GST collections over the last few years is evidence of the GST regime overcoming initial teething issues, gaining stability, and gradually entering a growth phase. Elucidate.

https://www.thehindu.com/business/Economy/march-2023-sees-second-highest-gst-collection-of-16-lakh-crore/article66687569.ece