New Delhi: India's goods and services tax (GST) marked its sixth anniversary on Saturday, with the ministry of finance reporting that the gross GST revenue collection for June exceeded Rs 1.61 lakh crore, indicating a 12 per cent year-on-year growth. The ministry stated that the collection surpassed Rs 1.6 lakh crore for the fourth time since the inception of GST, maintained a streak of Rs 1.4 lakh crore for 16 consecutive months, and reached Rs 1.5 lakh crore seven times.
Introduced on July 1, 2017, the One Nation, One Tax GST regime streamlined the previous indirect tax structure by incorporating various Central and state-level taxes. This major tax reform not only established a uniform tax rate for commodities across the country but also aimed to enhance government tax revenue while reducing the compliance burden on individuals and businesses. The finance ministry marked the occasion by highlighting the journey of GST over the past six years.
According to the finance ministry, the gross GST revenue collected in June 2023 amounted to Rs 1,61,497 crore, with CGST at Rs 31,013 crore, SGST at Rs 38,292 crore, IGST at Rs 80,292 crore (including Rs 39,035 crore from imports), and cess at Rs 11,900 crore (including Rs 1,028 crore from imports). The government settled Rs 36,224 crore to CGST and Rs 30,269 crore to SGST from IGST. After regular settlement, the total revenue for the Centre and the states in June 2023 stood at Rs 67,237 crore for CGST and Rs 68,561 crore for SGST.
The ministry highlighted that domestic transaction revenues, including import of services, were 18 per cent higher compared to the same month last year. The average monthly gross GST collection for the first quarter of FY 2021-22, FY 22-23, and FY 23-24 were Rs 1.10 lakh crore, Rs 1.51 lakh crore, and Rs 1.69 lakh crore, respectively.
Despite the six-year milestone, tax experts are calling for key reforms such as the establishment of tribunals for appeals and the inclusion of petroleum products in the GST regime. Traders' body Confederation of All India Traders (CAIT) also called for a fresh review of GST and the formation of a special task force to simplify and rationalise the tax system, reduce regulatory burdens on traders, and expand the tax net.
During an event on GST Day, Union finance minister Nirmala Sitharaman emphasised the positive impact of GST on common citizens, stating that it is regrettable that GST has been labelled as burdensome when it has actually brought relief to the people.
