June GST Collection Surpasses ₹1.74 Lakh Crore: Slowest Growth Since Pandemic

 In June 2024, the Goods and Services Tax (GST) revenue collection totaled around ₹1.74 lakh crore, marking a 7.7% increase from June 2023, when collections were ₹1.61 lakh crore. This growth, however, falls significantly short compared to the modest 2% rise observed in July 2021, post the COVID-19 pandemic. Notably, the first quarter of the current fiscal year saw a total GST collection of ₹5.57 lakh crore. The settlement under Integrated GST (IGST) amounted to ₹39,586 crore for Central GST (CGST) and ₹33,548 crore for State GST (SGST).

June GST Collection Surpasses ₹1.74 Lakh Crore: Slowest Growth Since Pandemic

April 2024 witnessed a record high in GST collections, reaching ₹2.10 lakh crore, though official government figures have yet to be released. Saurabh Agarwal, Tax Partner at EY India, attributed this strong performance to economic momentum, praising both the tax department and the business community. Agarwal expressed optimism that robust collection growth could spur GST reforms, potentially addressing operational capital barriers.

As GST celebrates its seventh anniversary since implementation on July 1, 2017, it has replaced approximately 17 local taxes and levies. The GST taxpayer base expanded significantly from 1.05 crore in April 2018 to 1.46 crore by April 2024. The Ministry of Finance highlighted GST's success in reducing household expenditure on food items and large-scale consumer goods since its inception.

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