Gross GST collection shows average growth of 12% on year on year basis

The Minister of State in the Ministry of Finance Shri Pankaj Chaudhary has answered various questions asked in Rajya Sabha that Gross GST collection shows an average growth of 12% on a year-on-year basis.

The Minister Shri Jayant Chaudhary asked the following questions in Rajya Sabha:

Will the Minister of FINANCE be pleased to state:

(a) whether the monthly GST collections are increasing across the country;

(b) if so, the details of the last 12 months, State-wise and month-wise;

(c) whether this increase is due to inflation or any other factors are responsible for this hike;

(d) if so, the reasons therefor;

(e) whether the Government envisions bringing petroleum products under the umbrella of GST; and

(f) if so, the details thereof and if not, the reasons therefor?

The Minister of State in the Ministry of Finance Shri Pankaj Chaudhary replied:

(a) and (b): The gross Goods and Services Tax (GST) collection on all supplies (domestic and imports) over the last 12 months is shown in Annexure. The gross GST collection in January 2023 was Rs.1,57,554 crore, which climbed to Rs.1,74,106 crore in January 2024. The gross GST collection has grown by an average of 12% year on year.

(c) and (d): No, Sir. The increase in GST is related to more than just inflation. Following the GST Council’s recommendations, the government has implemented a number of initiatives to improve GST compliance and raise GST revenue in the country. Some of the elements that contributed to this increase include GST rate rationalisation to improve tax compliance, an e-invoice system, mandatory e-filing and e-payment of taxes, regular enforcement and compliance verification of tax returns, taxpayer education and media campaigns, and so on.

(e) and (f): No such proposal is currently under consideration. However, under Article 279 A (5) of the Constitution, the Goods and Services Tax Council must recommend the date on which the Goods and Services Tax will be paid on petroleum crude, high-speed diesel, motor spirit (also known as petrol), natural gas and aviation turbine fuel (ATF). In this regard, the GST Council has yet to make a judgement.