Record GST collection but IGST on imports fell 5% on lower commodity prices

If this trend continues, the decline in IGST might indicate weak customs duty collections in FY24

The goods and services tax (GST) collection hit a record high in April this year, but muted external demand-induced depressed commodity prices  have cast a shadow on the mop-up. This was reflected in the fall of integrated GST (IGST) collections from the import of goods in the month.

The revenue from this head fell 4.7 per cent at Rs 34,772 crore in the first month of 2023-24 over Rs 36,705 crore in the same month the previous year.

The fall in IGST from imports can be attributed to a decline in the inbound shipments of goods in March. Merchandise imports