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| Insights into India's February 2023 GST Surge |
In a recent development unveiled on March 2nd, official data disclosed a significant surge in India's Goods and Services Tax (GST) gross revenue collection for February 2023. The figures soared by 12.54% year-on-year, crossing the impressive milestone of ₹1.68 lakh crore. This achievement not only marks the third-highest monthly receipts from the indirect tax regime but also stands as the third-best GST revenue growth figure for the fiscal year 2023-24.
Key Highlights:
- The provisional GST revenue accrual of ₹1.68 lakh crore in February ranks as the fourth highest historically recorded in any given month.
- February witnessed a notable acceleration in GST revenue growth rate, soaring to 12.54% from January's 8.31%.
- This robust expansion underscores the burgeoning growth momentum within the domestic economic landscape, characterized by heightened manufacturing output and resilient services activity.
- Total GST collections for the April 2022 to February 2023 period stand impressively at ₹18.44 lakh crore, showcasing an 11.7% increase compared to the corresponding months of the previous fiscal year.
- The consistent maintenance of monthly GST revenues above the ₹1.4 lakh crore threshold for 15 consecutive months highlights the stability of the tax base.
State-wise Collections:
- Major states such as Maharashtra and Karnataka witnessed sharp rises of 22% and 17% in GST collections respectively, while Telangana recorded a commendable 14% expansion.
- Other states demonstrating noteworthy double-digit revenue growth include Gujarat (13%), Haryana (27%), and West Bengal (18%).
Sectoral Contributions:
- Experts attribute the surge in GST revenues to higher imports in recent weeks, potentially bolstering customs duties, alongside the sustained uptrend in domestic manufacturing and services activities.
- Notable contributions were observed from sectors such as hotels and restaurants (18% growth), transportation services (16%), and real estate (10%) during February.
Implications:
- The sharp uptick in GST revenue for February 2023 serves as a testament to India's resilient economic momentum amidst prevailing global uncertainties.
- The consistent monthly GST receipts above ₹1.4 lakh crore underscore the deepening of the tax base, which in turn supports the government's welfare spending initiatives while alleviating deficit concerns.