Indian Economy News

Average monthly gross GST collection doubles to US$ 20 billion (Rs. 1.66 lakh crore)

During the presentation of the Interim Budget 2024-25, Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman, highlighted the positive impact of the Goods and Services Tax (GST) on India's indirect tax system. A recent survey by a prominent consulting firm indicated that 94% of industry leaders perceive the transition to GST as favorable, with 80% acknowledging its role in supply chain optimization.

Ms. Sitharaman noted that the GST tax base has more than doubled, and the average monthly gross GST collection has almost doubled to US$ 20 billion (Rs. 1.66 lakh crore) in the current fiscal year. States' State Goods and Services Tax (SGST) revenue, including compensation, achieved a buoyancy of 1.22 from 2017-18 to 2022-23, showcasing significant financial gains compared to the pre-GST period.

The finance minister underscored that consumers are the primary beneficiaries of GST, as reduced logistics costs and taxes have led to lower prices for most goods and services. Additionally, quoting the National Time Release Studies, Ms. Sitharaman highlighted Customs' efforts to facilitate international trade, resulting in substantial reductions in import release time at various points.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.