January GST collection rises 10.4% to Rs 1.72 trn, second-highest ever

RE for CGST may be higher than BE for FY24 in Interim Budget

Goods and services tax (GST) collections hit the second highest monthly figure ever at over Rs 1.72 trillion in January, growing by 10.4 per cent over Rs 1.56 trillion from the same month in the previous year.
 

These GST figures were till 5 pm of January 31, and this means a bit more money could be mopped up for the month. This mop-up may help the government log higher figures for Central GST in the revised estimates (RE) for FY24 in the Interim Budget than what are given in the Budget Estimates (BE). However, GST cess could be close to the BE. 
 

The Budget for 2023-24 pegged Rs 8.11 trillion from central GST and Rs 1.45 trillion from the cess for 2023-24.
 

The finance ministry did not give the exact break-up of CGST, cess collections for January. CGST got Rs 6.29 trillion till December of FY24.
 

If we assume that CGST got the same figures — Rs 72,934 crore- in January as was in October since total GST collections were very close in each month — GST on the central account would be Rs 7.01 trillion.

 

With two months more to go for the financial year to end, Rs 1.10 trillion could be easily surpassed. Similarly, cess would come to Rs 1.20 trillion till January of FY24 with some assumptions given above.
 

This may reach very close to Rs 1.45 trillion by FY24-end with around Rs 12,000 crore as average monthly collections from it so far.

This is the third month in the current financial year when collections are more than Rs 1.7 trillion. Though Rs 1.72 trillion was also collected in October, collections in January were slightly more when exact figures are compared.
 

GST receipts in October stood at Rs 1.72 trillion while it was Rs 126 crore more till 5 pm on January 31.
 

GST yielded Rs 1.87 trillion in April this financial year, which is the highest so far. March and April GST collections are generally higher than other months.
 

“The consistent growth in GST collections with this one (January) being the second-highest collection ever is a big cheer for the economy,” said Abhishek Jain, partner and national head, indirect tax, at KPMG.
 

He said one significant reason for this growth could be voluntary payments by businesses for FY23 during finalisation of annual returns and reconciliation of statements in December.