Finance Minister Nirmala Sitharaman in a recent press briefing, on the occasion of GST Day 2023 said that the monthly Goods and Services Tax (GST) revenue remaining over Rs 1.6 lakh crore has become the new normal since the implementation in 2017.
Six years after the rollout of the biggest indirect tax reform in India, GST revenue of Rs 1.5 lakh crore every month has become a new normal and tax officers are focusing on dealing with fraudsters who are adopting newer modus operandi to game the system, causing loss to the exchequer.
According to Sitharaman, “GST was the signal we all welcomed in 2017 for the economic integration of new India.” It was further added that the tax regime has brought down taxes on goods and encouraged better movement of goods across the country.
Speaking at the event, the finance minister also noted that after implementation of GST, tax growth was 12.3 percent while GDP growth was 9 percent, resulting in high buoyancy. States’ tax buoyancy has grown by 1.15 percent even without GST compensation.
Sitharaman also highlighted that the tax regime is not only for businesses but also for the betterment of end consumers, while reiterating that decisions taken by the GST Council are for the common man. She pointed out that from the time of introduction of GST, there has been a reduction in rates. Washing machine, TV, which were earlier taxed at 31.5 percent now at 12 percent under GST and movie tickets above Rs 100 have been brought down to 18 percent. Sitharaman in her argument added that thus, GST not working in India stands as a myth.
Meanwhile, GST collections for the month of June rose 12 percent year-on-year to over Rs 1.61 lakh crore. The revenues had touched a record high of Rs 1.87 lakh crore in April.
The Finance Ministry made a statement on July 1 where it was stated that the gross GST collection has crossed Rs 1.60 lakh crore mark for the fourth time since the roll-out of the indirect tax regime six years ago on July 1, 2017. The average monthly gross GST collection for the first (April-June) quarter of the 2021-22, 2022-23 and 2023-24 are Rs 1.10 lakh crore, Rs 1.51 lakh crore and Rs 1.69 lakh crore, respectively.
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