GST Collection of June 2023

Ankita Tiwari

28 Aug, 2023

Introduction

GST (Goods or Services Taxes) was implemented in India on 1^st July 2017. There have been continuous debates regarding its success. Meanwhile,the Indian government has continuously made record-breaking GST collections. The gross GST revenue collected for June 2023 is INR 1,61,497 crore. It was a 12% year-on-year(Y-o-Y) growth. Since the inception of GST, this was the fourth time when Gross GST collection crossed INR 1.6 lakh crore mark. For 16 months in a row, the GST collection has crossed INR 1.4 lakh crore mark, and for the 7^th time in a row, it has crossed INR 1.5 lakh crore mark. In April 2023, India witnessed a record-high GST collection of INR 1.87 lakh crore, where indirect taxes only stood at INR 1,57,090 crore.

The GST Collection data for June 2023 was announced on the sixth anniversary of GST in India. The introduction of GST marked a significant event in India’s taxation history. GST is a comprehensive system and its introduction in a federal country like India was a remarkable step. Multiple tax laws were consolidated into a single system.

Growth in GST Collection

India has shown an upward graph in GST Collection. The average monthly gross GST collection data of the first quarter (Q1) of the past three financial years has been represented below in a tabular form:

For June 2023, the Gross GST collected is INR 1,61,497 crore. Let’s see its break up into CGST, SGST, IGCT and cess.

The gross GST revenue collected in June 2023 is 12% higher than the GST collected in the same month of the previous financial year. In June 2022, the Gross GST collections were up by 56% Y-o-Y. Let’s make a comparison between the GST Collection in June 2023 and June 2022 in a tabular form:

Further, in June 2023, revenues from domestic transactions, including import of services, were 18% higher compared to the same month in the previous year. This was the fourth time the GST collection surpassed the INR 1.60 lakh crore mark. In the last four years, the GST collection for the Q1 of FY 2021-22, FY2022-23 and FY 2023-24 was INR 1.10 lakh crore, INR 1.51 lakh crore and INR 1.69 lakh crore respectively.

The Chart below shows the trend of GST collection in Q1 of the current financial year:

GST Collection for June 2023 State-wise

State-wise SGST Settled from IGST

Words by the Finance Minister on the 6^th Anniversary of GST

The Finance Minister of India, on the 6^th Anniversary of GST, stated that GST has been compared to the pre-GST era on many common-use items. She also emphasized that the GST has brought down the taxes paid by consumers, removing the cascading effect of “tax on tax”. Not only this, but it has also boosted the revenue of states. She also highlighted that items like sugar, tea, milk powder, edible vegetable oils, spices, and footwear attract a 5% tax under GST compared to a 6-10% tax under the earlier tax regime. In the pre-GST era, the tax burden for toothpaste, perfumes, hair oils, soaps, and detergents was almost 28%, reduced to 18% under the GST. She added that the average pre-GST tax on common-use electrical items like refrigerators, mixer-grinder, vacuum cleaners, TV up to 27 inches, and washing machines was 31.5% which has come down to 12% under GST. Moving on, she also added that many bathroom & toilet fittings, windows, doors, and frames which were earlier taxed at around 28%, were reduced to 18% in the GST regime. Movie tickets were brought down from 35% to 12% for tickets up to INR 100 and 18% for tickets above INR 100. Hence, she subtly pointed out that a step like GST has relieved the commoners by reducing their tax burden.

Conclusion

In conclusion, it can be said that though the GST regime has increased compliance requirements, it has reduced the tax burden, and the increased GST collection is generating more revenue for the government.

Read our Article:Drop in GST Collection: Government to Track Down Defaulters