Introduction of GST Revenue Collection
The month of June 2023 has witnessed a significant milestone in the Indian economy as the gross Goods and Services Tax (GST) revenue collection has exceeded ₹1.60 lakh crore. This impressive achievement marks a 12% year-on-year growth compared to the same period last year. The government’s continuous efforts and effective tax policies have contributed to this remarkable feat. In this article, we will delve deeper into the details of the GST revenue collection for June 2023, analyzing the state-wise growth and understanding the implications of this milestone.
In June 2023, the Gross GST (Goods and Services Tax) revenue collected reached an impressive ₹1,61,497 crore, recording a remarkable 12% year-on-year growth. This significant increase in revenue showcases the resilience and strength of the Indian economy. The collection consists of CGST (Central Goods and Services Tax) amounting to ₹31,013 crore, SGST (State Goods and Services Tax) totaling ₹38,292 crore, IGST (Integrated Goods and Services Tax) standing at ₹80,292 crore, including ₹39,035 crore collected on import of goods, and cess amounting to ₹11,900 crore, including ₹1,028 crore collected on import of goods.
Distribution of Revenue
The government has settled ₹36,224 crore to CGST and ₹30,269 crore to SGST from IGST. After the regular settlement, the total revenue for the Centre and the States in June 2023 stands at ₹67,237 crore for CGST and ₹68,561 crore for SGST. This distribution allows for a balanced allocation of resources between the central and state governments for the development and welfare of the nation.
Positive Growth Trends
The revenue collected in June 2023 reflects a positive growth trend compared to the same month in the previous year. The overall revenue from domestic transactions, including the import of services, witnessed a remarkable 18% increase compared to June 2022. This growth indicates a strong recovery and progress in various sectors of the economy.
Consistent Revenue Milestones
June 2023 marks the fourth time that the gross GST collection has crossed the ₹1.60 lakh crore mark, demonstrating the steady growth and stability of the GST system. To gain a deeper understanding of the revenue collection pattern, let us examine the average monthly gross GST collection for the first quarter of the financial years 2021-22, 2022-23, and 2023-24. The average monthly collections for these periods are ₹1.10 lakh crore, ₹1.51 lakh crore, and ₹1.69 lakh crore respectively. These figures highlight the upward trajectory of GST revenue collection.
The Breakdown of GST Revenue Collection
In June 2023, the total gross GST revenue collected amounted to ₹1,61,497 crore. This revenue consists of several components, including CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), IGST (Integrated Goods and Services Tax), and cess. The breakdown of these components is as follows:
- CGST: ₹31,013 crore
- SGST: ₹38,292 crore
- IGST: ₹80,292 crore (including ₹39,035 crore collected on import of goods)
- Cess: ₹11,900 crore (including ₹1,028 crore collected on import of goods)
To ensure a fair distribution of revenue between the Centre and the States, the government settled ₹36,224 crore to CGST and ₹30,269 crore to SGST from the IGST. After the regular settlement, the total revenue for CGST amounted to ₹67,237 crore, while the SGST reached ₹68,561 crore in June 2023.
Comparing Revenue Growth
The growth in GST revenue collection for June 2023 is not only impressive but also showcases the resilience of the Indian economy. The revenue from domestic transactions, including the import of services, witnessed an 18% increase compared to the same period last year. This growth can be attributed to various factors, such as increased economic activity and improved compliance with GST regulations.
State-wise GST Collection
Analyzing the state-wise figures of GST collected in each state during June 2023 provides insights into the regional variations in revenue generation. It is interesting to observe the growth percentages and the absolute amount of revenue collected in different states and union territories. The table below presents the data for state-wise growth of GST revenues during June 2023:
| State/UT | June ’22 | June ’23 | Growth (%) |
|---|---|---|---|
| Jammu and Kashmir | 371.83 | 588.68 | 58% |
| Himachal Pradesh | 693.14 | 840.61 | 21% |
| Punjab | 1,682.50 | 1,965.93 | 17% |
| Chandigarh | 169.7 | 227.06 | 34% |
| Uttarakhand | 1,280.92 | 1,522.55 | 19% |
| Haryana | 6,713.89 | 7,988.18 | 19% |
| Delhi | 4,313.36 | 4,744.11 | 10% |
| Rajasthan | 3,385.95 | 3,892.01 | 15% |
| Uttar Pradesh | 6,834.51 | 8,104.15 | 19% |
| Bihar | 1,232.06 | 1,437.06 | 17% |
| Sikkim | 256.37 | 287.51 | 12% |
| Arunachal Pradesh | 58.53 | 90.62 | 55% |
| Nagaland | 33.58 | 79.2 | 136% |
| Manipur | 38.79 | 60.37 | 56% |
| Mizoram | 25.85 | 55.38 | 114% |
| Tripura | 62.99 | 75.15 | 19% |
| Meghalaya | 152.59 | 194.14 | 27% |
| Assam | 972.07 | 1,213.05 | 25% |
| West Bengal | 4,331.41 | 5,053.87 | 17% |
| Jharkhand | 2,315.14 | 2,830.21 | 22% |
| Odisha | 3,965.28 | 4,379.98 | 10% |
| Chhattisgarh | 2,774.42 | 3,012.03 | 9% |
| Madhya Pradesh | 2,837.35 | 3,385.21 | 19% |
| Gujarat | 9,206.57 | 10,119.71 | 10% |
| Dadra and Nagar Haveli and Daman & Diu | 349.70 | 339.31 | -3% |
| Maharashtra | 22,341.40 | 26,098.78 | 17% |
| Karnataka | 8,844.88 | 11,193.20 | 27% |
| Goa | 428.63 | 480.43 | 12% |
| Lakshadweep | 0.64 | 21.86 | 3316% |
| Kerala | 2,160.89 | 2,725.08 | 26% |
| Tamil Nadu | 8,027.25 | 9,600.63 | 20% |
| Puducherry | 182.46 | 210.38 | 15% |
| Andaman and Nicobar Islands | 22.36 | 35.98 | 61% |
| Telangana | 3,901.45 | 4,681.39 | 20% |
| Andhra Pradesh | 2,986.52 | 3,477.42 | 16% |
| Ladakh | 13.22 | 14.57 | 10% |
| Other Territory | 205.3 | 227.42 | 11% |
| Center Jurisdiction | 143.42 | 179.62 | 25% |
| Grand Total | 103317.18 | 121433.52 | 18% |
The table provides a comprehensive overview of the growth percentages and highlights the states that have witnessed substantial improvements in revenue collection. Some noteworthy observations include:
- Jammu and Kashmir experienced an impressive 58% growth in GST revenue, indicating positive economic developments in the region.
- Lakshadweep saw an astronomical growth of 3316% in revenue collection, which could be attributed to various factors such as improved compliance and increased economic activities.
- Maharashtra, Karnataka, and Tamil Nadu, being major economic hubs, demonstrated significant growth rates of 17%, 27%, and 20% respectively.
- The Union Territory of Dadra and Nagar Haveli and Daman & Diu witnessed a slight decline in revenue collection by 3%, requiring further analysis to determine the underlying reasons.
- Overall, the states and union territories have shown a positive growth trend, contributing to the overall increase in the GST revenue collection.
SGST Portion of IGST Settled to States/UTs
In addition to the gross GST collection, it is important to consider the SGST portion of the IGST settled to the states and union territories. This settlement allows for a fair distribution of revenue and promotes the development of individual states. The table below presents the amount of SGST portion of IGST settled to states and union territories in June 2023:
| State/UTs | Amount (Rs. In crore) |
|---|---|
| Jammu and Kashmir | 417.85 |
| Himachal Pradesh | 222.35 |
| Punjab | 961.45 |
| Chandigarh | 122.21 |
| Uttarakhand | 221.64 |
| Haryana | 1,153.80 |
| Delhi | 1,136.95 |
| Rajasthan | 1,554.76 |
| Uttar Pradesh | 3,236.11 |
| Bihar | 1,491.33 |
| Sikkim | 39.30 |
| Arunachal Pradesh | 105.43 |
| Nagaland | 61.38 |
| Manipur | 49.88 |
| Mizoram | 55.95 |
| Tripura | 84.46 |
| Meghalaya | 86.75 |
| Assam | 743.95 |
| West Bengal | 1,503.81 |
| Jharkhand | 304.92 |
| Odisha | 409.84 |
| Chhattisgarh | 366.81 |
| Madhya Pradesh | 1,606.95 |
| Gujarat | 1,571.56 |
| Dadra and Nagar Haveli and Daman & Diu | 27.97 |
| Maharashtra | 3,484.55 |
| Karnataka | 2,688.90 |
| Goa | 162.97 |
| Lakshadweep | 4.80 |
| Kerala | 1,415.11 |
| Tamil Nadu | 1,873.31 |
| Puducherry | 184.21 |
| Andaman and Nicobar Islands | 24.33 |
| Telangana | 1,621.37 |
| Andhra Pradesh | 1,159.88 |
| Ladakh | 28.68 |
| Other Territory | 82.97 |
| Total | 30,268.53 |
This table provides an overview of the amount of SGST portion of IGST settled to each state and union territory. The settlements ensure that the states receive their fair share of revenue, enabling them to meet their financial requirements and undertake developmental initiatives.
State-Wise Growth Analysis
Analyzing the state-wise growth of GST revenues during June 2023 provides valuable insights into regional economic trends. Let’s take a closer look at the growth percentages in different states and union territories:
- Jammu and Kashmir: Revenue growth of 58%
- Himachal Pradesh: Revenue growth of 21%
- Punjab: Revenue growth of 17%
- Chandigarh: Revenue growth of 34%
- Uttarakhand: Revenue growth of 19%
- Haryana: Revenue growth of 19%
- Delhi: Revenue growth of 10%
- Rajasthan: Revenue growth of 15%
- Uttar Pradesh: Revenue growth of 19%
- Bihar: Revenue growth of 17%
- Sikkim: Revenue growth of 12%
- Arunachal Pradesh: Revenue growth of 55%
- Nagaland: Revenue growth of 136%
- Manipur: Revenue growth of 56%
- Mizoram: Revenue growth of 114%
- Tripura: Revenue growth of 19%
- Meghalaya: Revenue growth of 27%
- Assam: Revenue growth of 25%
- West Bengal: Revenue growth of 17%
- Jharkhand: Revenue growth of 22%
- Odisha: Revenue growth of 10%
- Chhattisgarh: Revenue growth of 9%
- Madhya Pradesh: Revenue growth of 19%
- Gujarat: Revenue growth of 10%
- Dadra and Nagar Haveli and Daman & Diu: Revenue decline of 3%
- Maharashtra: Revenue growth of 17%
- Karnataka: Revenue growth of 27%
- Goa: Revenue growth of 12%
- Lakshadweep: Revenue growth of 3316%
- Kerala: Revenue growth of 26%
- Tamil Nadu: Revenue growth of 20%
- Puducherry: Revenue growth of 15%
- Andaman and Nicobar Islands: Revenue growth of 61%
- Telangana: Revenue growth of 20%
- Andhra Pradesh: Revenue growth of 16%
- Ladakh: Revenue growth of 10%
- Other Territory: Revenue growth of 11%
- Center Jurisdiction: Revenue growth of 25%
The data above showcases the varying growth rates among different states and union territories. It is evident that several regions have experienced substantial growth in GST revenue collection, contributing to the overall increase in national revenue.
The Remarkable Journey of GST Collection
Crossing the ₹1.60 lakh crore mark in GST collection for the fourth time is a testament to the steady growth of the Indian economy. The average monthly gross GST collection for the first quarter of the fiscal years 2021-22, 2022-23, and 2023-24 were ₹1.10 lakh crore, ₹1.51 lakh crore, and ₹1.69 lakh crore, respectively. This upward trajectory indicates a positive trend in revenue generation and reflects the effectiveness of GST policies.
Conclusion
The achievement of surpassing ₹1.60 lakh crore in GST revenue collection for June 2023 is a significant milestone for the Indian economy. The growth, which stands at 12% compared to the same period last year, showcases the resilience and potential of the GST system. The state-wise growth analysis further highlights the regional variations in revenue collection. As the economy continues to recover and thrive, it is crucial to maintain effective tax policies and promote compliance to ensure sustained growth in GST revenue for the benefit of the nation.
The GST revenue collection for June 2023 has reached a significant milestone, surpassing ₹1.60 lakh crore with a 12% year-on-year growth. The distribution of revenue between the Centre and the States showcases a balanced approach to resource allocation. The positive growth trends and consistent revenue milestones highlight the robustness of the Indian economy and its ability to recover and progress. The state-wise analysis of GST collection provides valuable insights into regional variations and growth percentages, with several states witnessing substantial improvements in revenue generation. The settlements of the SGST portion of IGST further contribute to a fair distribution of revenue among the states and union territories. Overall, the GST collection in June 2023 reflects a promising outlook for the Indian economy and sets the stage for continued growth and development in the future.
