Delhi’s GST collection up by 17% in first 6 months this year as compared to last year

Goods and Services Tax (GST) collection of Delhi increased by 17 % in the first 6 months this year as compared to the period of 2022-23.

It is giving hope to the government that its collections will exceed the projections.

According to the data, the Delhi government collected Rs. 19,101 crore from Value Added Tax (VAT) in the first two quarters of 2023-24 and GST in comparison with Rs. 16,352 crore windup between April 1 and September 30, 2022.

GST officials said that the revenue collection from the sale of goods and services would now get better, providing a hike to the city’s economy.

Further, officials added that Rs. 3,886 crore in April, Rs. 3,079 crore in May, Rs. 2,865 crore in June, Rs. 3,388 crore in July, Rs. 2,883 crore in August, and Rs. 2,998 crore in September collected by the Trade and Taxes department.

The basis of the taxpayer has risen from nearly 7.6 lakh to over 7.8 lakh now. With better conformity and elevated business, the tax collection would improve further.

After two uneventful years due to Covid and inactive economic activities, the tax collections were lower in 2020-21 and 2021-22 but started improving in the last financial year i.e. 2022-23.

GST officials said that there was a negative growth in 2020-21 due to the lockdown. But now we have outdo the pre-pandemic economic activities.

Delhi government’s central component in tax revenue is GST. It has calculated a total receipt of Rs. 78,800 crore in the budget for 2023-24, of which the tax collection has been estimated at Rs. 53,565 crore, with GST and VAT earnings at Rs. 37,200 crore.

According to the officials, With better implementation, intensive verification of new GST applicants, use of data analysis tools to weed out fraudsters, and tight monitoring of tax filing, collections have improved significantly.

While the VAT collection in the first six months was Rs. 3,381 crore, the Delhi government got Rs. 8,021 as IGST settlement and Rs. 7,630 crore as state GST.

Value Added Tax (VAT) is levied on liquor and five petroleum products those are petrol, diesel, aviation turbine fuel, natural gas, and crude oil, while all other products and services come under Goods and Services Tax (GST).

The government also got Rs. 12,817 crore as GST compensation in the period of 2022-23.