As the country celebrated the 7th birthday of the Goods and Service Tax regime on July 1, 2024, a new development has been making news in the country. As per multiple sources, the Ministry of Finance seems to have decided to discontinue the monthly release of GST data from July 2024 onwards.
For the past 74 months, the Government has consistently released the data on GST collection on the 1st day of every month. But going forward, this does not seem to be the case as the Government published no official data on July 1, 2024.
Also Read: 53rd GST Council Meeting Highlights
An important point to note here is that there has been no official press release or statement from the government on this development. According to industry experts, this move by the government would potentially affect the analysis of activity trends in the economy. However, we will update this section in case of any new official developments.
June 2024 GST Collection Hits ₹1.74 Lakh Crore
In June 2024, India’s GST collection reached ₹1.74 lakh crore, a robust figure that highlights the continued strong economic activity. This marks a slight decrease from the peak of ₹2.10 lakh crore in April 2024 but remains significantly higher than previous years’ averages.
Key Highlights And Trends
- May 2024 saw GST collections of ₹1.73 lakh crore, a slight dip from April, but still a strong indicator of economic activity
- Cumulatively, the first two months of FY 2024-25 saw GST revenues reaching ₹3.83 lakh crore, representing an 11.3% year-on-year growth
- The GST collection figures align with the current GDP estimates, underscoring the robustness of the Indian economy amidst seasonal and election-related fluctuations
- Higher GST collections from regions like Jammu & Kashmir, Manipur, Puducherry, and Arunachal Pradesh indicate growing economic activity in these areas, reflecting broader economic development
The growth in June’s gross GST revenues, on transactions undertaken in the economy during May, was the slowest since June 2021. It was the month of June 2021 when revenues had risen just 2% amidst the COVID-19 pandemic’s second wave. This is the first time since the pandemic that the GST growth rate has gone down to single digits.
FAQs on GST
GST revenue is allocated to both the central and state governments for funding public services, infrastructure projects, and various welfare programmes.
VAT (Value Added Tax) is a state-level tax collected at multiple points in the supply chain, whereas GST is a unified national tax collected at the final point of sale, replacing multiple state and central taxes.
In India, GST is collected by both the Central Government and State Governments. The Central Government collects Central GST (CGST) and Integrated GST (IGST), while State Governments collect State GST (SGST).
GST abolished Central Excise Duty, Service Tax, Additional Customs Duty (CVD), Special Additional Duty of Customs (SAD), VAT, Central Sales Tax (CST), Purchase Tax, Luxury Tax, Entry Tax, and Entertainment Tax, replacing them with a unified tax system.
Input Tax Credit (ITC) in GST allows businesses to reduce the tax they’ve paid on inputs from their tax liability on outputs, ensuring tax is only paid on the value added at each stage of production.
GST collection is calculated by applying the GST rate to the taxable value of goods or services sold, then subtracting any eligible Input Tax Credit (ITC) from the tax payable on the sales.
India’s GST system is inspired by the GST models of countries like Canada and Australia, adapting elements to fit its federal structure and economic context.
The Reverse Charge Mechanism (RCM) in GST is a system where the liability to pay GST shifts from the supplier to the recipient of goods or services, requiring the recipient to pay the tax directly to the government.
