GST Collection Rises 7.7% to Rs 1.74 Lakh Crore in June: Slowest Growth Rate in 3 Years

This past Monday marked a significant moment in India’s tax history. Coinciding with the seventh anniversary of the GST rollout, the government announced that Gross Goods and Services Tax (GST) collections have risen by 7.7% year-on-year, reaching Rs 1.74 lakh crore in June. However, this growth represents the slowest rate in three years, with the last similar slow pace recorded in June 2021.

The usual release on GST collections used to include state-wise breakup of the revenue collected in each state, which would act as an indicator of the economic and consumption activities.

End of an Era: No More Monthly Announcements

In a surprising turn of events, the government has decided to cease the regular monthly announcements of GST collections. Traditionally, these figures were released on the first day of each month, providing a detailed state-wise revenue breakup and insights into economic and consumption activities. This change means there will no longer be official statements regarding GST collections moving forward.

The Numbers Game: Breaking Down the Figures

Despite the slower growth rate, the overall GST collection numbers for the financial year (April-June) have reached Rs 5.57 lakh crore. In May 2024, the collection was Rs 1.73 lakh crore, while in June 2023, it stood at Rs 1.61 lakh crore. The Integrated GST (IGST) settlement included Rs 39,586 crore towards Central GST (CGST) and Rs 33,548 crore towards State GST (SGST). Notably, GST collections hit a record high of Rs 2.1 lakh crore in April 2024.

Celebrating Seven Years of GST

On the occasion of the seventh anniversary of GST, the Finance Ministry took to social media platform X to highlight the benefits brought by this indirect tax regime. The Ministry emphasized how reduced tax rates on household goods have positively impacted every home, making household appliances and mobile phones more affordable.

Growing GST Taxpayer Base

Since the implementation of GST, the taxpayer base has expanded significantly. From 1.05 crore taxpayers in April 2018, the number has grown to 1.46 crore by April 2024. The Ministry shared comparative charts showcasing pre- and post-GST tax rates on household goods, underscoring how GST has facilitated easier living and reduced expenditure on essential items.

Conclusion

While the latest GST figures show a slower growth rate, the overall impact of the GST regime over the past seven years highlights its role in transforming India’s tax landscape. As we move forward without monthly GST collection announcements, the long-term benefits of GST continue to reflect in reduced household costs and an expanding taxpayer base.