The Goods and Services Tax (GST) collection for January 2024 has achieved the second-highest monthly collection ever. According to data from the Finance Ministry, the year-over-year growth for the first 10 months was 11.6 per cent, while the growth in the month of January reached 10.4 per cent.
In January 2024, the gross GST revenue collected amounted to Rs 1,72,129 crore, reflecting a notable 10.4 per cent year-on-year growth compared to the revenue of Rs 155,922 crore collected in January 2023, as reported by the data on Wednesday (January 31). The Ministry also noted that January 2024 marks the third month in the current financial year with a collection of Rs 1.70 lakh crore or more.
Allocation for GST and CGSTThe government has allocated Rs 43,552 crore to CGST and Rs 37,257 crore to SGST from the IGST collection, it said. The cumulative gross GST collection from April 2023 to January 2024 witnessed an impressive 11.6 per cent year-on-year growth, reaching Rs 16.69 lakh crore. This substantial increase, compared to the Rs 14.96 lakh crore collected in the corresponding period of the previous year (April 2022-January 2023).
The data depicts trends in monthly gross GST revenues throughout the current fiscal year, as per the Ministry. It is anticipated that the final collection for the month will surpass the current estimate, further augmenting the overall GST revenue for January 2024.
What is Goods and Services Tax?The Goods and Services Tax (GST) is a successor to VAT used in India on the supply of goods and services. GST is a digitalized form of VAT where you can also track the goods services. Both VAT and GST have the same taxation slabs. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. The GST is divided into five different tax slabs for collection of tax: 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments.
