India's GST Revenue Climbs 8.1% to Rs 1.83 Lakh Crore in February
India's Goods and Services Tax (GST) collections witnessed a robust increase of 8.1% year-on-year, reaching Rs 1,83,609 crore in February 2024. This growth underscores a significant uptick in consumption following recent rate reductions and highlights the economy's underlying strength.
Domestic and Import Collections Show Strong Performance
Based on transactions from January, domestic GST collections are estimated to have risen by 5.3% to Rs 1,35,772 crore. Meanwhile, revenue from imports surged impressively by 17.2% to Rs 47,837 crore, according to the latest official data. This marks the third consecutive month of accelerating collections since the implementation of the revamped GST regime, often referred to as GST 2.0.
Experts Highlight Economic Resilience and Consumption Boost
M S Mani, a partner at Deloitte, commented, "The consumption increase that has led to an 8% plus rise in monthly and annual collections is also supported by strong GDP data and other macroeconomic indicators published recently." He noted that with reduced rates on numerous items, the government is relying on higher volumes driven by a consumption boost to offset part of the revenue impact.
Pratik Jain, partner at Price Waterhouse & Co, added, "Gross GST collections are showing a steady increase after GST 2.0, reflecting resilience in the economy backed by sustained demand. Many consumption states have had relatively higher growth than others. The data indicates that GST has entered a phase of stable and predictable growth, which is encouraging to see. Higher growth on imports indicates buoyancy in cross-border trade activities."
Net Collections and State-Wise Performance
On a net basis, GST collections increased by 7.9% to Rs 1.6 lakh crore, as refunds rose by 10.2% to Rs 22,595 crore. The performance across states varied significantly:
- Top Performers: Sikkim led with a remarkable 67% growth, followed by Meghalaya at 33% and Bihar at 23%.
- Laggards: Mizoram saw a 24% decline, Uttarakhand dropped 10%, and Madhya Pradesh fell by 8%.
Among the major revenue-earning states, Tamil Nadu reported a 6% decrease. In contrast, several key states registered increases:
- Maharashtra: 6% growth
- Uttar Pradesh: 5% growth
- Gujarat: 9% growth
- Karnataka: 11% growth
This data points to a mixed but overall positive trend, with consumption-driven states showing stronger performance, aligning with the broader economic indicators of sustained demand and recovery.
