GST collection in FY 23 set to cross Rs20 lakh-crore
The GST collection data for March 2024 is expected on April 1 as government normally releases the numbers for a month on the first day of the next month Goods and Services Tax (GST) collection in the current financial year ending March 31 is expected to surpass the Rs20 lakh crore mark with an annualised growth of approximately 12%, two officials aware of the development said, attributing the increase to heightened economic activity and ease of compliance driven by technology.
Robust collections are also expected for GST cess in the 2023-24 period, with total revenue under the component likely to be around Rs1.45 lakh crore, the officials added. This increases the probability that it could be rolled back sooner than the March 31, 2026 deadline set initially.
The government extended the GST cess, which is levied on luxury items and so-called sin goods such as automobiles, liquor, cigarettes, aerated water and coal, up to March 31, 2026 to retire the Rs2.69 lakh crore debt taken to compensate states for their revenue shortfall during the pandemic years. “Cess will cease to exist even before the deadline if the principal and interest amounts are paid early,” one of the officials cited above said.
