Remarkable 13% Growth in GST Collections for March 2023
India’s GST collections in March 2023 experienced a significant 13% increase, reaching the second-highest monthly collection of Rs 1.6 lakh crore. Receipts from goods imports rose 8%, while inflows from domestic transactions and services imports surged 14% compared to the previous year.
Gross GST Collections for 2022-23 Show a 22% Increase
Gross GST collections for the fiscal year 2022-23 recorded an impressive 22% growth compared to 2021-22, amounting to Rs 18.1 lakh crore. This reflects an average gross monthly collection of nearly Rs 1.51 lakh crore.
March 2023 Marks the 12th Consecutive Month of Collections Over Rs 1.4 Lakh Crore
The growth in GST collections during March 2023 was the fastest in the year, marking the 12th consecutive month of inflows over Rs 1.4 lakh crore and the fourth month in 2022-23 exceeding the Rs 1.5 lakh crore mark. The only previous instance of higher collections occurred in April 2022, with Rs 1,67,540 crore.
Record High Integrated GST Collections and Rising Compliance
Integrated GST collections touched an all-time high of Rs 82,907 crore in March 2023, including Rs 42,503 crore collected from importing goods. According to the Finance Ministry, return filings during March have been the highest ever, indicating improved compliance levels. The ministry highlighted that “93.2% of the statement of invoices (in GSTR-1) and 91.4% of returns (in GSTR-3B) of February were filed till March 2023 as compared to 83.1% and 84.7%, respectively, in the same month last year.”
Higher Compliance Trends to Positively Impact Direct Tax Revenues
The increasing compliance trends under the GST regime are expected to contribute to the enhancement of direct tax revenues to some extent.
State-wise Growth in GST Collections for March 2023
GST collections for March largely represent transactions carried out in February. The revenue share between the Centre and the States, after settling IGST collections, amounted to Rs 62,954 crore for Central GST and Rs 65,501 crore for State GST.
Sixteen states and the Union Territory of Jammu and Kashmir reported higher growth from domestic transactions during March than the national average of 14.4%. Some of these include Bihar and J&K (both at 29.4%), Karnataka (18.4%), Uttar Pradesh, Rajasthan, Odisha, and Tamil Nadu (all around 15%). The lowest growth rates were observed in Himachal Pradesh (8.1%) and Gujarat (8.3%), while revenues from Andhra Pradesh, Maharashtra, Kerala, Telangana, and West Bengal recorded higher growth rates.
GST Appellate Tribunal’s Potential Impact on Stabilising the GST Regime
Tax experts believe the likely establishment of the GST Appellate Tribunal this year could further stabilise the GST regime, providing an additional platform for addressing tax disputes and enhancing compliance.