The Goods and Services Tax or GST collection, reportedly for the current financial year ending on March 31 is expected to surpass Rs. 20 lakh crore, marking an extensive growth of approximately 12 per cent in comparison to previous years. This surge is attributed to expanded economic activities and enhanced compliance facilitated by technological advancements.
Additionally, it is predicted that GST cess collections for the period of 2023-24 will be robust, amounting to close to Rs. 1.45 lakh crore. This optimistic outlook raises the possibility of an early cessation of the GST cess, originally slated to continue until March 31, 2026, as per the initial deadline set by the government.
The extension of the GST cess, levied on luxury items and goods such as automobiles, liquor, cigarettes, aerated water, and coal, until March 31, 2026, was mainly aimed at repaying the Rs. 2.69 lakh crore debt incurred to compensate States for revenue shortfalls during the pandemic. However, officials suggest if the principal and interest amounts are repaid earlier, the cess could be discontinued before the stipulated deadline.
Recent data indicates a promising trajectory for GST collections, with projections predicting that March 2024 figures may cross Rs. 1.60 lakh crore. This surge is expected to leverage total gross revenues for the entire financial year beyond the Rs. 20 lakh crore mark, leading to a consistent trend of growth.
Throughout the fiscal year 2023-24, the average monthly gross collections stood at Rs. 1.67 lakh crore, with indications pointing towards a similar performance in March. The reliability of these projections is backed by electronic waybill numbers, which serve as a digital compliance mechanism to monitor the movement of goods under the GST regime.
