The Goods and Services Tax (GST) collections have gone up by 9.3 per cent so far in the current fiscal 2024-25 to Rs 14.56 lakh crore. In the April-November period of last year, the tax mop-up was Rs 13.32 lakh crore.
The surge in recent GST collections reflects a positive trajectory for India’s economy, underscoring robust domestic consumption and buoyant import activity. The figures bode well for the country’s fiscal health and economic recovery efforts, signalling resilience amidst global uncertainties.
In April this year, the total GST mop-up surged to a record high of Rs 2.10 lakh crore.
During the financial year 2023-24, the total gross GST collection was recorded at Rs 20.18 lakh crore, an 11.7 per cent increase compared to the previous fiscal year.
The Goods and Services Tax was introduced in the country with effect from July 1, 2017.
To give relief to common people, GST on Hair oil, toothpaste, soap; detergents and washing powder; wheat; rice; curd, lassi, buttermilk; wristwatches; TV up to 32 inches; refrigerators; washing machines, mobile phones, are among key items on which GST rates have been slashed substantially, or for some kept at zero level.
In the last GST Council meeting in September, tax rates for salted products were slashed from 18 per cent to 12 per cent; tax cut from 12 per cent to 5 per cent on three key cancer drugs.
In the June meeting, a uniform rate of 5 per cent IGST was imposed on imports of aircraft parts and tools to boost MRO activities; uniform 12 per cent GST on all milk cans (of steel, iron, and aluminium irrespective of their use); reduced GST rates on paper-based cartons, boxes, and cases.
Also, to give relief to the taxpayers, the Central Board of Indirect Taxes has relaxed rules to ensure that accrued interest and penalties are avoided for GST demands for 2017-18 to 2019-20 by paying the full tax amount due by March 2025.
If you have received a demand notice for these fiscal years, you can avoid interest and penalties by paying the full tax amount due by March 2025.
Further, in trade facilitation measures, GST rates have been exempted for rectified spirit, platform tickets, retiring rooms, cloakroom services, intra railway transactions, infrastructure usage and maintenance services between Indian Railways and SPVs.
GST has also been exempted on accommodation services on stays valued up to Rs 20,000 per month for a minimum of 90 days; incentives on RuPay Cards and low-value transactions on BHIM-UPI by Banks.
In another push to e-commerce, CBIC reduced Tax Collected at Source (TCS) for supplies made through Electronic Commerce Operators from 1 per cent to 0.5 per cent.
The GST Council, a federal body comprising the Union Finance Minister as its Chairman and Finance Ministers of all States as members, has played its part in the forum. The next meeting of the GST Council will be held on December 21 at Jaisalmer, Rajasthan.
(With inputs from ANI)
