January Achieves Second-Highest Monthly GST Revenue of Rs 1.72 Lakh Crore

In January, Goods and Services Tax (GST) revenues exceeded Rs 1.72 lakh crore, marking the second-highest monthly collection and the third time surpassing the Rs 1.70 lakh crore mark. Experts attribute this significant figure to the resilience of the Indian economy and improved tax compliance.

The government anticipates a slight increase in the final revenue figure for January since the data was released a day early. Typically, monthly revenue data is released on the first day of the following month. However, an exception was made for January due to the government's presentation of the fiscal Budget for the upcoming financial year on February 1.

The Union finance ministry announced on Wednesday that the gross GST revenue collected in January 2024 amounted to Rs 1,72,129 crore as of 5:00 PM on January 31, 2024. This marks a 10.4% increase compared to the revenue of Rs1,55,922 crore collected in January 2023 by the same time.

The ministry also stated that the final collection for January 2024 is expected to be even higher. Throughout the current financial year, monthly GST revenues have shown significant growth. In 2023-24, collections surpassed the Rs1.70 lakh crore mark three times. April 2023 recorded the highest-ever collection at Rs 1,87,035 crore, followed by October 2023 with Rs1,72,003 crore.

Experts noted that the monthly GST collections this financial year have consistently exceeded Rs1.66 lakh crore on average. This trend is primarily attributed to a strong economy and improved compliance driven by technological advancements.

The robust GST collections serve as a barometer of economic well-being, showcasing the resilience of the Indian economy amidst global challenges such as conflicts in Ukraine and Gaza, and disruptions in the Red Sea trade route.

These figures align with India's initial growth estimates released on January 5, which predicted a higher-than-expected GDP growth of 7.3% for 2023-24. The International Monetary Fund (IMF) also revised its growth forecast for India in the same period from 6.3% to 6.7%.

Furthermore, cumulative gross GST collections showed a year-on-year growth of 11.6% in the first 10 months of the fiscal year 2023-24 (from April 2023 to January 2024, as of 5:00 PM on January 31). Total collections amounted to Rs 16.69 lakh crore, compared to Rs 14.96 lakh crore collected during the corresponding period of the previous year.

Also Read: Income Tax Slab 2024-25: Tax rates to stay unchanged, announces FM in interim Budget, with a minor relief for some taxpayers

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