India’s GST Collections Reach Rs 1.73 Lakh Crore in September 2024
New Delhi [India], October 1: In September 2024, India’s Goods and Services Tax (GST) collections reached Rs 1.73 lakh crore, marking a 6.5% increase from the previous year, according to data from the finance ministry.
In September 2023, the total collection was Rs 1.62 lakh crore. The collections for CGST, SGST, IGST, and cess all saw year-on-year increases in September.
So far in 2024, the total GST collection has been Rs 10.9 lakh crore, a 9.5% rise from Rs 9.9 lakh crore in the same period of 2023. In April 2024, the GST mop-up surged to a record high of Rs 2.10 lakh crore.
For the financial year 2023-24, the total gross GST collection was Rs 20.18 lakh crore, an 11.7% increase compared to the previous fiscal year. The average monthly collection for the fiscal year ending in March 2024 was Rs 1.68 lakh crore, surpassing the previous year’s average of Rs 1.5 lakh crore.
The increase in GST collections reflects a positive trend for India’s economy, indicating strong domestic consumption and active import activity. These figures are promising for the country’s fiscal health and economic recovery efforts, showing resilience amidst global uncertainties.
The Goods and Services Tax was introduced in India on July 1, 2017. States were assured compensation for any revenue loss due to GST implementation for five years, as per the GST (Compensation to States) Act, 2017.
Key items like hair oil, toothpaste, soap, detergents, wheat, rice, curd, wristwatches, TVs up to 32 inches, refrigerators, washing machines, and mobile phones have seen substantial GST rate cuts or zero rates, benefiting the public.
The GST Council, a federal body with the Union Finance Minister as its Chairman and Finance Ministers of all States as members, has played a crucial role in managing GST rates.
Doubts Revealed
GST -: GST stands for Goods and Services Tax. It is a tax that people pay when they buy goods (like toys or clothes) and services (like a haircut or a movie ticket).
Rs 1.73 Lakh Crore -: Rs 1.73 Lakh Crore is a way to say a very large amount of money in India. ‘Lakh’ means 100,000 and ‘Crore’ means 10 million. So, Rs 1.73 Lakh Crore is 1.73 trillion rupees.
GST Collections -: GST Collections refer to the total amount of money collected by the government from the Goods and Services Tax.
6.5% increase -: A 6.5% increase means that the amount of money collected this year is 6.5% more than what was collected last year.
GST Council -: The GST Council is a group of people who decide how much tax should be charged on different goods and services. They help make sure the tax system is fair.
Financial year -: A financial year is a 12-month period used for budgeting, accounting, and financial reporting. In India, it usually starts on April 1 and ends on March 31 of the next year.
Essential items -: Essential items are things that people need for daily life, like food, medicine, and clothing. The GST Council decides lower tax rates for these items to make them affordable.
