India’s Goods and Services Tax (GST) collection for the month of April 2023 reached a record high of Rs 1.87 lakh crore, marking a 12 percent increase from the previous year’s collection. This is the highest monthly collection since the implementation of the GST regime.
The finance ministry announced that the total GST revenue collected for the month of April 2023 was Rs 1,87,035 crore, out of which the Central GST (CGST) was Rs 38,440 crore, State GST (SGST) was Rs 47,412 crore, Integrated GST (IGST) was Rs 89,158 crore (including Rs 34,972 crore collected on import of goods), and cess was Rs 12,025 crore.
This surge in GST collection comes as a major relief for the government, which has been facing revenue constraints due to the COVID-19 pandemic. The increase in collection is being attributed to the revival of economic activities and a rise in consumption.
The April 2023 GST collection is the fifth consecutive month of collection exceeding the Rs 1 lakh crore mark. The previous high of Rs 1.68 lakh crore was recorded in April 2022.
The increase in GST collection indicates that the economy is on the path of recovery, and the government’s efforts to revive the economy are yielding positive results. The GST collection is a crucial indicator of the health of the economy as it is a reflection of consumption and economic activity.
The government has been implementing various measures to boost economic growth, including infrastructure development, liberalization of foreign investment norms, and tax reforms. The GST regime was implemented in 2017 to bring about a uniform tax structure across the country and to replace the multiple taxes that were levied by the central and state governments.
The GST is an indirect tax that is levied on the supply of goods and services. The tax is collected at every stage of the supply chain, from the manufacturer to the final consumer. The GST has simplified the tax structure and has made it easier for businesses to comply with tax regulations.
The increase in GST collection is also being attributed to the government’s crackdown on tax evasion. The government has been taking strict measures to ensure that businesses comply with tax regulations and pay their dues on time. The government has also implemented a number of measures to simplify the tax structure and reduce the compliance burden on businesses.