Topic 2: HIGHEST GST COLLECTION: A POSITIVE CUE

GST collection grew by 12 per cent in April to ₹1.87 lakh crore, the highest monthly mop-up since the rollout of the indirect tax regime. The gross GST revenue collected in the month of April 2023 is ₹ 1,87,035 crore of which CGST is ₹38,440 crore, SGST is ₹47,412 crore, IGST is ₹89,158 crore (including ₹34,972 crore collected on import of goods) and cess is ₹12,025 crore (including ₹901 crore collected on import of goods). The rise in GST collections was bolstered by a recovery in consumer spending, high inflation rates, and a partial influence of the rate hike decisions made at the 47th Council meeting, which came into force along with a broader economic revival. The reason behind this surge is due The GST Council 47th meeting that coincided with the 5th anniversary, had recommended rationalizing GST rates and withdrawal of exemptions on certain goods such as pre-packaged and labelled food items. While the changes intended to reduce and correct the inverted duty structure and allow credits on inputs and input services on goods that were previously exempted, the difference in GST rates has also pushed collections in the last month.