GST revenues during June 2023 quarter grew by more than 11 per cent. This translates into a tax:GDP ratio of more than 1.3
GST collections in August 2023 jumped 11 per cent year-on-year to about Rs 1.6 lakh crore on the back of increased compliance and less evasion, Revenue Secretary Sanjay Malhotra told PTI on Friday. The GST collection was Rs 1,43,612 crore in August 2022.
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“Roughly numbers are in the range of 11 per cent year on year growth as in earlier months,” Malhotra told reporters. A 11 per cent growth roughly translates to around Rs 1.60 lakh crore.
He was replying to a question on the expected GST revenue numbers for August, the data for which will be released later on Friday.
Malhotra said GDP growth was 7.8 per cent in June quarter and nominally it has grown 8 per cent.
“GST revenues during June quarter grew by more than 11 per cent. This translates into a tax:GDP ratio of more than 1.3,” Malhotra said.
Malhotra said GST collections have grown by more than nominal GDP and this is despite no increase in tax rates. This is because of better compliance and improved tax collection efficiency. Tax evasion and avoidance is low.
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On the GST numbers, Pratik Jain, partner at Price Waterhouse & Co LLP, said, “GST collections are now regularly crossing 1.6 lac crore mark, which is higher than what was estimated for FY24. Double digit growth over previous year’s corresponding collection is encouraging and with festive season on the anvil, it’s likely to increase further. Initiatives such as Mera Bill, Mera Adhikar (launched today) which nudges the common citizens to create a more compliant ecosystem should also help the Government in plugging the tax leakages.”
