Synopsis: In April 2024, India witnessed a historic milestone in its tax landscape as the Goods and Services Tax (GST) revenue surged to an unprecedented high of ₹2.10 lakh crore. This article provides an in-depth analysis of the factors driving this remarkable achievement, including the significant year-on-year growth in domestic transactions and imports. It delves into the positive performance across various components of GST, such as CGST, SGST, IGST, and Cess, and offers insights into the state-wise distribution of GST collections. Additionally, the article explores the implications of this record-breaking revenue collection on India's fiscal health and economic growth trajectory.
India's Goods and Services Tax (GST) regime achieved a historic milestone in April 2024, with GST revenue collection reaching an all-time high of ₹2.10 lakh crore. This significant achievement reflects the country's robust economic performance and underscores the effectiveness of the GST framework in streamlining tax administration and boosting revenue generation. In this article, we delve into the various factors contributing to this record-breaking revenue collection and analyze its implications for India's fiscal landscape.
Domestic Transactions and Imports Drive Growth:
One of the key drivers behind the surge in GST revenue for April 2024 was the substantial growth in both domestic transactions and imports. Domestic transactions recorded a remarkable year-on-year increase of 13.4%, indicating buoyant economic activity across various sectors. Simultaneously, imports witnessed a robust growth of 8.3%, underscoring India's expanding global trade footprint. This dual growth trajectory propelled the overall GST collections to unprecedented levels, signaling a positive outlook for the country's economy.
Breakdown of April 2024 Collections:
The breakdown of GST collections for April 2024 reveals a balanced contribution from different components of the tax system. The Central Goods and Services Tax (CGST) contributed ₹43,846 crore, highlighting the significant revenue contribution from intra-state transactions. On the other hand, the State Goods and Services Tax (SGST) registered collections of ₹53,538 crore, reflecting the substantial revenue generated at the state level. The Integrated Goods and Services Tax (IGST) collections stood at ₹99,623 crore, with a significant portion attributed to taxes levied on imported goods. Additionally, Cess collections amounted to ₹13,260 crore, further bolstering the overall GST revenue for the month.
Inter-Governmental Settlement:
A crucial aspect of the GST framework is the inter-governmental settlement mechanism, which ensures equitable distribution of tax revenue between the central and state governments. In April 2024, the central government settled ₹50,307 crore to CGST and ₹41,600 crore to SGST from the IGST collected. This settlement mechanism plays a pivotal role in maintaining fiscal harmony between the center and the states, enabling them to meet their respective budgetary requirements and fund developmental initiatives.
State-wise Analysis of GST Revenues:
An analysis of state-wise GST revenues provides valuable insights into the regional dynamics of tax collection and economic activity. States such as Punjab, Haryana, and Delhi recorded impressive growth rates of 21%, 21%, and 23%, respectively, reflecting robust economic performance and efficient tax administration. Conversely, states like Sikkim and Lakshadweep witnessed a decline in GST revenues, highlighting the need for targeted interventions to stimulate economic growth in these regions. Overall, the state-wise analysis underscores the diverse fiscal landscape of India and the importance of tailored policy measures to promote inclusive growth across all states and union territories.
The record-breaking GST revenue collection of ₹2.10 lakh crore in April 2024 marks a significant milestone in India's journey towards fiscal consolidation and economic prosperity. The strong growth in domestic transactions and imports, coupled with efficient tax administration and inter-governmental settlement mechanisms, has propelled India's tax revenue to unprecedented levels. However, challenges remain in ensuring equitable revenue distribution among states and addressing regional disparities in economic development. Moving forward, sustained efforts to streamline tax administration, promote compliance, and foster inclusive growth will be crucial in harnessing the full potential of India's GST regime and driving long-term economic sustainability.
Table 1: State-wise growth of GST Revenues during April, 2024
| State/UT | Mar-23 | Mar-24 | Growth (%) |
|---|---|---|---|
| Jammu and Kashmir | 803 | 789 | -2% |
| Himachal Pradesh | 957 | 1,015 | 6% |
| Punjab | 2,316 | 2,796 | 21% |
| Chandigarh | 255 | 313 | 23% |
| Uttarakhand | 2,148 | 2,239 | 4% |
| Haryana | 10,035 | 12,168 | 21% |
| Delhi | 6,320 | 7,772 | 23% |
| Rajasthan | 4,785 | 5,558 | 16% |
| Uttar Pradesh | 10,320 | 12,290 | 19% |
| Bihar | 1,625 | 1,992 | 23% |
| Sikkim | 426 | 403 | -5% |
| Arunachal Pradesh | 238 | 200 | -16% |
| Nagaland | 88 | 86 | -3% |
| Manipur | 91 | 104 | 15% |
| Mizoram | 71 | 108 | 52% |
| Tripura | 133 | 161 | 20% |
| Meghalaya | 239 | 234 | -2% |
| Assam | 1,513 | 1,895 | 25% |
| West Bengal | 6,447 | 7,293 | 13% |
| Jharkhand | 3,701 | 3,829 | 3% |
| Odisha | 5,036 | 5,902 | 17% |
| Chhattisgarh | 3,508 | 4,001 | 14% |
| Madhya Pradesh | 4,267 | 4,728 | 11% |
| Gujarat | 11,721 | 13,301 | 13% |
| Dadra and Nagar Haveli and Daman & Diu | 399 | 447 | 12% |
| Maharashtra | 33,196 | 37,671 | 13% |
| Karnataka | 14,593 | 15,978 | 9% |
| Goa | 620 | 765 | 23% |
| Lakshadweep | 3 | 1 | -57% |
| Kerala | 3,010 | 3,272 | 9% |
| Tamil Nadu | 11,559 | 12,210 | 6% |
| Puducherry | 218 | 247 | 13% |
| Andaman and Nicobar Islands | 92 | 65 | -30% |
| Telangana | 5,622 | 6,236 | 11% |
| Andhra Pradesh | 4,329 | 4,850 | 12% |
| Ladakh | 68 | 70 | 3% |
| Other Territory | 220 | 225 | 2% |
| Center Jurisdiction | 187 | 221 | 18% |
| Grand Total | 1,51,162 | 1,71,433 | 13% |
Table-2: SGST & SGST portion of IGST settled to States/UTs - April (Rs. in crore)
| State/UT | Pre-Settlement SGST | Post-Settlement SGST | Growth | Pre-Settlement SGST | Post-Settlement SGST | Growth |
|---|---|---|---|---|---|---|
| Jammu and Kashmir | 394 | 362 | -8% | 918 | 953 | 4% |
| Himachal Pradesh | 301 | 303 | 1% | 622 | 666 | 7% |
| Punjab | 860 | 999 | 16% | 2,090 | 2,216 | 6% |
| Chandigarh | 63 | 75 | 20% | 214 | 227 | 6% |
| Uttarakhand | 554 | 636 | 15% | 856 | 917 | 7% |
| Haryana | 1,871 | 2,172 | 16% | 3,442 | 3,865 | 12% |
| Delhi | 1,638 | 2,027 | 24% | 3,313 | 4,093 | 24% |
| Rajasthan | 1,741 | 1,889 | 9% | 3,896 | 3,967 | 2% |
| Uttar Pradesh | 3,476 | 4,121 | 19% | 7,616 | 8,494 | 12% |
| Bihar | 796 | 951 | 19% | 2,345 | 2,688 | 15% |
| Sikkim | 110 | 69 | -37% | 170 | 149 | -12% |
| Arunachal Pradesh | 122 | 101 | -17% | 252 | 234 | -7% |
| Nagaland | 36 | 41 | 14% | 107 | 111 | 4% |
| Manipur | 50 | 53 | 6% | 164 | 133 | -19% |
| Mizoram | 41 | 59 | 46% | 108 | 132 | 22% |
| Tripura | 70 | 80 | 14% | 164 | 198 | 21% |
| Meghalaya | 69 | 76 | 9% | 162 | 190 | 17% |
| Assam | 608 | 735 | 21% | 1,421 | 1,570 | 10% |
| West Bengal | 2,416 | 2,640 | 9% | 3,987 | 4,434 | 11% |
| Jharkhand | 952 | 934 | -2% | 1,202 | 1,386 | 15% |
| Odisha | 1,660 | 2,082 | 25% | 2,359 | 2,996 | 27% |
| Chhattisgarh | 880 | 929 | 6% | 1,372 | 1,491 | 9% |
| Madhya Pradesh | 1,287 | 1,520 | 18% | 2,865 | 3,713 | 30% |
| Gujarat | 4,065 | 4,538 | 12% | 6,499 | 7,077 | 9% |
| Dadra and Nagar Haveli and Daman & Diu | 62 | 75 | 22% | 122 | 102 | -16% |
| Maharashtra | 10,392 | 11,729 | 13% | 15,298 | 16,959 | 11% |
| Karnataka | 4,298 | 4,715 | 10% | 7,391 | 8,077 | 9% |
| Goa | 237 | 283 | 19% | 401 | 445 | 11% |
| Lakshadweep | 1 | 0 | -79% | 18 | 5 | -73% |
| Kerala | 1,366 | 1,456 | 7% | 2,986 | 3,050 | 2% |
| Tamil Nadu | 3,682 | 4,066 | 10% | 5,878 | 6,660 | 13% |
| Puducherry | 42 | 54 | 28% | 108 | 129 | 19% |
| Andaman and Nicobar Islands | 46 | 32 | -32% | 78 | 88 | 13% |
| Telangana | 1,823 | 2,063 | 13% | 3,714 | 4,036 | 9% |
| Andhra Pradesh | 1,348 | 1,621 | 20% | 3,093 | 3,552 | 15% |
| Ladakh | 34 | 36 | 7% | 55 | 61 | 12% |
| Other Territory | 22 | 16 | -26% | 86 | 77 | -10% |
| Grand Total | 47,412 | 53,538 | 13% | 85,371 | 95,138 | 11% |
The record-breaking GST revenue collection in April 2024 reflects India's resilience and economic strength amidst global uncertainties. The comprehensive analysis provided in this article offers valuable insights into the drivers of this achievement and underscores the importance of continued reforms to sustain this momentum and foster inclusive growth across all sectors and regions of the country.
