Table of Contents

GST revenue collection increases 13% to ₹1.60 lakh crore in March 2023

The Goods and Services Tax (GST) revenue collection in India has increased by 13% to ₹1.60 lakh crore in March 2023, according to the Ministry of Finance. The government’s efforts to curb tax evasion, streamline tax administration, and promote digital transactions have resulted in the increase in GST collections.

The GST collections in March 2023 are higher than the ₹1.42 lakh crore collected in March 2022. The growth rate in GST collections for March 2023 is the highest in the last six months. The GST collections have been showing an upward trend since September 2022, indicating a revival of economic activity in the country.

The GST collections for March 2023 include ₹74,634 crore collected as Central GST, ₹76,582 crore collected as State GST, and ₹9,842 crore collected as Integrated GST. The GST collections for the financial year 2022-23 stood at ₹15.77 lakh crore, exceeding the government’s revised estimate of ₹15.25 lakh crore.

Why this News is important

The increase in GST revenue collection is significant for the Indian economy, as it indicates a revival of economic activity in the country. GST is the biggest tax reform in India since independence, and it aims to simplify the tax structure, increase tax compliance, and promote economic growth. The increase in GST revenue collection also indicates that the government’s efforts to curb tax evasion and promote digital transactions are yielding positive results.

Historical context

The GST was introduced in India on 1 July 2017, replacing multiple indirect taxes such as excise duty, service tax, and value-added tax. The GST is a comprehensive tax levied on the supply of goods and services, and it has a dual structure of Central GST and State GST. The GST Council, consisting of the finance ministers of the central and state governments, is responsible for making recommendations on the rates, exemptions, and classification of goods and services under the GST.

In the initial years of the GST implementation, there were several issues such as technical glitches in the GST Network, confusion over the GST rates, and protests by the traders. However, the government has taken several steps to address these issues and streamline the tax administration, resulting in an increase in GST revenue collection.

Key takeaways from “GST revenue collection increases 13% to ₹1.60 lakh crore in March 2023”

Serial Number	Key takeaway
1.	The GST revenue collection in India has increased by 13% to ₹1.60 lakh crore in March 2023.
2.	The government’s efforts to curb tax evasion, streamline tax administration, and promote digital transactions have resulted in the increase in GST collections.
3.	The growth rate in GST collections for March 2023 is the highest in the last six months, indicating a revival of economic activity in the country.
4.	The GST collections for the financial year 2022-23 stood at ₹15.77 lakh crore, exceeding the government’s revised estimate of ₹15.25 lakh crore.
5.	The increase in GST revenue collection indicates that the government’s efforts to curb tax evasion and promote digital transactions are yielding positive results.

GST revenue collection

Important FAQs for Students from this News

Q. What is GST?

A. Goods and Services Tax (GST) is an indirect tax imposed on the supply of goods and services in India. It is a comprehensive tax that has replaced many indirect taxes like excise duty, VAT, service tax, etc.

Q. What is GST revenue collection?

A. GST revenue collection refers to the amount of tax collected under the Goods and Services Tax regime.

Q. What is the significance of GST revenue collection for the Indian economy?

A. GST revenue collection is an important indicator of the health of the Indian economy. It is used to fund various development projects and welfare schemes of the government.