In March, GST collections (mop-up) rose by 13% to reach Rs. 1.60 lakh crore, the second-highest ever recorded, resulting in a 22% revenue growth rate for the entire 2022-23 fiscal year.
March also saw over 91 per cent of the GST registered businesses filing returns and paying taxes reflecting greater compliance and improving economic activity.
Gross GST revenue collected in March 2023 is Rs 1,60,122 crore, of which Central GST is Rs 29,546 crore, State GST is Rs 37,314 crore, Integrated GST is Rs 82,907 crore (including Rs 42,503 crore collected on import of goods) and cess is Rs 10,355 crore, the finance ministry said in a statement.
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In April 2022, GST collection had touched a record high of close to Rs 1.68 lakh crore. The second highest mop-up was recorded in March 2023, at a little over Rs 1.60 lakh crore.
For full 2022-23 fiscal year, gross Goods and Services Tax (GST) mop-up grew 22 per cent to Rs 18.10 lakh crore. The average gross monthly collection for the full year is Rs 1.51 lakh crore.
March is the fourth time in the just gone by financial year that the monthly gross GST collection has crossed Rs 1.5 lakh crore-mark. Last month also witnessed the highest IGST collection ever, the ministry said.
Revenue for the month of March 2023 is 13 per cent higher than the GST revenue in the same month last year, the ministry said. During the month, revenue from import of goods was 8 per cent higher and revenue from domestic transaction (including import of services) is 14 per cent higher than the revenue from these sources during the same month last year.
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The ministry said return filing during March 2023 has been the highest ever. 93.2 per cent of statement of invoices (in GSTR-1) and 91.4 per cent of returns (in GSTR-3B) of February were filed till March 2023 as compared to 83.1 per cent and 84.7 per cent, respectively a year ago.
KPMG in India Partner Indirect Tax Abhishek Jain said the monthly and yearly GST mop-up point towards the growing trajectory of the Indian economy.
Another cheer point is the highest ever compliance rate with 91.4 per cent of returns being filed in the month of March, indicating success of revenue authorities and businesses in ensuring tax compliance and preventing tax evasion,” Jain said.
Deloitte India, Partner, Leader – Indirect Tax, Mahesh Jaising said with the growth in economic activity and increased focus on GST analytics-based audits, the trend should see upward trajectory in the coming months.
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Also, with the new FTP being rolled out from today, we have to wait and watch the impact on the import-export which is expected to have a role in GST mop-ups too, Jaising said.
Tax Connect Advisory Partner Vivek Jalan said businesses are also understanding that robust compliance is the way forward under GST and a significant boost in GST return filing taking the compliance ratio to more than 90 per cent from early 80 per cent shows that Indian businesses are fast moving into the mainstream.
This would enhance the Income Tax revenues also and lead to overall GDP growth, Jalan added.
(With agency inputs)