- Gross GST collection reached ₹1.78 trillion in March of the last financial year, the second-highest amount recorded. The total collection for the entire 2023-24 financial year was ₹20.18 trillion, a growth of 11.7% over the previous year.
- However, the GST-GDP ratio has only moderately increased over the years. In 2023-24, it was 6.86% of the GDP, slightly higher than the previous year’s 6.72%. Six years ago, in 2018-19, the GST-GDP ratio was 6.23%.
- Net GST collections, which are more important for the government, saw a rise from 5.89% of the GDP in 2022-23 to 6.13% in 2023-24. The GST buoyancy, reflecting the change in receipts relative to the size of the economy, remained above one for the past three years but declined from 1.6 in 2021-22 to 1.3 in 2023-24.
- The increase in GST collections can be attributed to digitization, the formalization of the economy, and better enforcement and compliance. Factors like economic recovery, government actions, smartphone penetration, fintech innovation, and growth in e-commerce will shape future trends and contribute to the buoyancy of GST collections.
Source A2ztaxcorp
