The gross Goods and Services Tax (GST) collections in February (pertaining largely to January transactions) came in at Rs 1.68 trillion, marking a 12.5% rise on year, data released by the finance ministry showed on Friday. The mop-up was the third-highest ever in any month.
The continued robustness of GST collections was nor exactly in convergence with the weak growth in private final consumption expenditure, revealed in national income data released on Thursday.
There was 13.9% rise in GST from domestic transactions and 8.5% increase in GST from import of goods in the month, the finance ministry said.
It added that during February, net of refunds, GST collections were Rs 1.51 trillion, up 13.6% on year. This is for the first time net collections are published.
Cumulatively, in April-February, gross GST mop stands at Rs 18.40 trillion, which is 11.7% higher than the corresponding period of FY23. The average monthly gross collections for FY24 is Rs 1.67 trillion, higher than Rs 1.5 trillion average in the previous fiscal.
In April-February, the GST collections, net of refunds, stand at Rs 16.36 trillion, which is 13% higher than the same period of last year. “Overall, the GST revenue figures demonstrate continued growth momentum and positive performance,” the ministry said.
Of the total collections in February – central GST (CGST) mop-up stood at Rs 31,785 crore, state GST (SGST) at Rs 39,615 crore, Integrated GST (IGST) at Rs 84,098 crore and cess collections came in at Rs 12,839 crore.
The Centre settled Rs 41,856 crore to CGST and ₹35,953 crore to SGST from the IGST collected in February. Post settlement, CGST collections stood at Rs 73, 641 crore and SGST at Rs 75,569 crore.
MS Mani, Partner, Deloitte India, said: “The impressive GST collections for February will provide further comfort to the government that the tax collection targets for the year will be exceeded by a good margin.”
The interim Budget has pegged the Central GST mop-up including cess collections in FY24 to come in at Rs 9.57 trillion, which is 12.7% higher on year. For FY25, the collections are pegged at Rs 10.7 trillion, 11.6% higher on year.
Pratik Jain, Partner, Price Waterhouse & Co LLP, said, “With this trend, it is reasonable to expect that the government may meet next year’s collection target easily.”