Introduction:
In a noteworthy development, the gross Goods and Services Tax (GST) revenue for May 2024 has reached ₹1.73 lakh crore, marking a significant 10% increase compared to the same period last year. This growth is primarily attributed to a robust surge in domestic transactions, which witnessed a remarkable uptick of 15.3%. Conversely, imports experienced a slight decline of 4.3% during this period.
After factoring in refunds, the net GST revenue for May 2024 amounts to ₹1.44 lakh crore, showcasing a commendable growth rate of 6.9% as opposed to the previous year.
Moving beyond the month of May, the cumulative gross GST collections for the fiscal year 2024-25 until May 2024 have soared to ₹3.83 lakh crore, reflecting a remarkable year-on-year growth of 11.3%. Once again, the surge in domestic transactions,
which escalated by 14.2%, has been a key driver of this growth, while imports witnessed a marginal increase of 1.4%. After accounting for refunds, the net GST revenue for the aforementioned period stands at ₹3.36 lakh crore, exhibiting an impressive growth rate of 11.6% compared to the corresponding period last year.
Unlocking Growth: Exploring the Surge in GST Revenue Collection for May 2024:
Delving deeper into the revenue distribution mechanism, it’s discernible that in May 2024, the Central Government disbursed ₹38,519 crore to the Central Goods and Services Tax (CGST) and ₹32,733 crore to the State Goods and Services Tax (SGST) from the net Integrated Goods and Services Tax (IGST) collection amounting to ₹67,204 crore. Consequently, the total revenue garnered by CGST and SGST in May 2024, post regular settlements, stood at ₹70,928 crore and ₹72,999 crore, respectively.
Similarly, for the fiscal year 2024-25 until May 2024, the Central Government settled ₹88,827 crore to CGST and ₹74,333 crore to SGST from the net IGST collection totaling ₹154,671 crore. Consequently, the cumulative revenue amassed by CGST and SGST in the aforementioned fiscal year until May 2024, post regular settlements,
amounted to ₹1,65,081 crore and ₹1,68,137 crore, respectively.
Conclusion:
In summation, the surge in GST revenue collection, particularly driven by robust domestic transactions, underscores a positive economic trajectory, affirming the efficacy of GST as a vital fiscal tool in India’s economic landscape.
Frequently Asked Questions FAQ:
1. What is GST?
GST stands for Goods and Services Tax. It is an indirect tax levied on the supply of goods and services in India, aimed at replacing multiple taxes levied by the central and state governments.
2. How does GST work?
Under GST, goods and services are categorized into different tax slabs, namely, 5%, 12%, 18%, and 28%. Businesses collect GST on behalf of the government and remit it to the appropriate authorities. Input Tax Credit (ITC) allows businesses to claim credit for the GST paid on purchases against the GST liability on sales.
3. Who is liable to pay GST?
Any individual or entity involved in the supply of goods or services, including manufacturers, traders, service providers, and e-commerce operators, is liable to pay GST. Additionally, businesses with an annual turnover exceeding the prescribed threshold limit are required to register for GST.
4. What are the benefits of GST?
Some key benefits of GST include the simplification of the tax structure, elimination of cascading effects, increased transparency, and improved compliance. GST promotes a unified national market by subsuming various indirect taxes and streamlining tax administration.
5. How is GST calculated?
GST is calculated as a percentage of the transaction value, based on the applicable tax rate for the goods or services supplied. The GST amount is computed by multiplying the taxable value of the supply by the applicable GST rate.
6. Is GST applicable on all goods and services?
Most goods and services are subject to GST, except for those that fall under the exempted or zero-rated categories. Exempted goods and services are not subject to GST, while zero-rated supplies are taxed at a GST rate of 0%.
7. How can I register for GST?
Businesses can register for GST online through the GST portal (www.gst.gov.in). They need to provide necessary details and documents, such as PAN, Aadhaar, address proof, bank account details, and business registration documents, to complete the registration process.
8. What are the different types of GST returns?
Under GST, businesses are required to file various types of returns, including GSTR-1 for outward supplies, GSTR-3B for monthly summary returns, GSTR-4 for composition dealers, and GSTR-9 for annual returns. The frequency and type of returns to be filed depend on the nature and turnover of the business.
9. What happens if I don’t comply with GST regulations?
Non-compliance with GST regulations can lead to penalties, fines, and legal consequences. Businesses failing to register for GST, file returns, or pay taxes within the prescribed timelines may face enforcement actions by the tax authorities.
10. Where can I find more information about GST?
For more information about GST, including registration, filing returns, and compliance requirements, you can visit the official GST portal (www.gst.gov.in) or consult with a qualified tax professional. Additionally, various government publications, guides, and resources are available to help businesses understand and comply with GST regulations.