Arvind Subramanian, the former central government Chief Economic Adviser (CEA), has pointed out that although GST collections reached a record high of ₹2.10 lakh crore in April 2024, GST revenue for the fiscal year 2023–24 (FY24) has not yet exceeded the pre-GST level. The former CEA, a senior fellow at the Peterson Institute for International Economics, took to social media platform "X" to lament that, despite improved implementation and recovery from the COVID-19 pandemic, India's GST revenue, even after seven years, remains below the pre-GST level at 6.1% of GDP.
Even though the April numbers were strong, he continued, the emphasis should be on revenues—net of refunds—rather than on headline collections. The former CEA said that the government did not release the refunds figure until February 2024, creating the appearance that collections were revenues.
Bravo to FinMinIndia for addressing that and taking steps to improve openness. Both figures are now provided in monthly releases, according to Subramanian. Government data indicates that since the implementation of the unified indirect tax regime seven years ago, April's record-high amount also marked the first time that GST collection has surpassed the ₹2 lakh crore threshold.
A statement from the finance ministry stated, "This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions, up 13.4%, and imports, up 8.3%." The net GST revenue for April, after refunds were deducted, was ₹1.92 lakh crore, or 15.5% more than it was during the same period the previous year.”
’The significant increase in GST collections from Northern States like UP, Punjab, Haryana, Delhi, etc. is what led to the all-time high in April 24's GST collection. Due to the fact that April's GST collection historically mirrors the economic activity of March, the final month of the tax year, the greatest GST collection was likewise reached on April 23.
.png "GST revenue for FY24 is still below pre GST levels after seven years")
