Goods & Services Tax (GST) collection in February saw a steady rise of over 9% to a total of ₹1.83 lakh crore, marking the 12th consecutive month with collections above ₹1.7 lakh crore. This increase reflects an improvement in consumer sentiments, according to data released by the Finance Ministry.
The net GST collections for February, after accounting for refunds, also showed a positive growth of 8.1% compared to the previous year. The gross GST revenue includes a 10.2% increase in domestic revenues, totaling ₹1.42 lakh crore, and a 5.4% rise in revenues from imports, amounting to ₹41,702 crore.
Central GST collections stood at ₹35,204 crore, State GST at ₹43,704 crore, Integrated GST at ₹90,870 crore, and compensation cess at ₹13,868 crore during the month.
Commenting on the data, M S Mani, a Partner at Deloitte India, noted that there was a healthy growth of GST collections on domestic transactions, but a slower growth in GST collections on imports. This trend needs to be analyzed in relation to the GDP data on domestic consumption and imports.
Saurabh Agarwal, Tax Partner at EY India, highlighted that the robust GST collection figures indicate the resilience of the Indian economy amidst global challenges. He also pointed out the effective implementation of Atmanirbhar Bharat policies, as well as the government’s efforts to ease working capital pressures on businesses through increased disbursement of refunds.
Overall, the consistent rise in domestic GST revenue suggests a move towards resolving issues such as inverted duty structures across various sectors, which would streamline administrative processes for both the government and taxpayers.
