India’s gross Goods and Services Tax (GST) collection for March witnessed a strong boom of 11.5 per cent year-on-year (YoY), reaching ₹1.78 trillion ($21.35 billion), in line with a government declaration released on Monday.
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This surge reflects the country’s strong financial performance despite global uncertainties, as reported by Reuters.
The government had accumulated ₹1.60 trillion in GST last year. The amount collected for March is the second-highest since the origin of the GST regime in 2017.
Notably, in April 2023, the GST collection peaked at ₹1.87 trillion.
The average month-to-month GST revenue for the financial year (FY) 2023-24, which ended on March 31, stood at ₹1.68 trillion, marking a considerable increase from the ₹1.5 trillion recorded in the preceding financial year.
The cumulative gross GST series for the FY2023-24 amounted to about ₹20.1 trillion, indicating a 12 per cent boom compared to the previous financial year.
Reuters cited Abhishek Jain, an associate at KPMG, who attributed the increase in tax revenue to India’s strong economic growth.
He claimed that the economy expanded by 8.4 per cent year over year in the October–December quarter, surpassing the 7.6 per cent growth observed in the corresponding quarter.
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Additionally, India’s Finance Minister, Nirmala Sitharaman, on Saturday said that the country’s economy was predicted to expand at the same annual rate for the FY2023-24 and that it was on course to grow by 8 per cent or more in the quarter that ended on March 31.
