The GST income collected for April 2023 was Rs. 187 lakh crore, which is the biggest amount ever recorded since the commencement of the GST in July 2017. GST receipts for April 2023 are 13% greater than those for April 2022. Additionally, on April 20th, the deadline for filing the GSTR-3 return Form, 9.8 lakh transactions totaling Rs. 68,228 crore—the biggest single-day collection ever—were recorded. This form displays the actual tax payment after subtracting input tax credit, or ITC, from the gross tax liability.
In-depth details about the second-highest GST collection period is April 2023
The Prime Minister reacted to this accomplishment by saying, “Great news for the Indian economy! The fact that tax collections are increasing despite lower tax rates demonstrates how effectively the GST has improved compliance and integration. This points to an improving economy, more responsible taxpayers, and better compliance.
Since the collections from April 2023 reflect the business from March, there is a chance that the momentum in the following few months won’t be the same. This is because March is the last month of the fiscal year, which is known for having a higher business trend and many year-end transactions are recorded as a result of annual closing, inter branch settlement, etc. In April 2023, Lakshadweep reported collecting 3 crore in GST.
Future GST collection would heavily depend on two important variables: GDP growth rate, which may reach 6-7 percent, and inflation, which is currently in the region of 5.5-6.5 percent. Due to the current situation, even if GST collection increases at the budgeted rate of 12 percent, the actual growth would only be 1 percent. Additional tax rate and exemption rationalisation may open the door to sustained and steady growth in GST revenue.