The government anticipates average monthly GST collections to reach nearly Rs 1.85 lakh crore in the upcoming fiscal year, an increase from about Rs 1.66 lakh crore collected this year, Revenue Secretary Sanjay Malhotra said on Friday. 


Sharing his inputs on the Budget 2024 released on Thursday, the official said that the incorporation date for start-ups to receive the tax benefits for 3 years out of 10 has also been extended by a year till March 31, 2025, during an interview with PTI. 


In the Budget 2024 presentation, Finance Minister Nirmala Sitharaman noted that the GST taxpayer base along with the monthly revenues have increased since the launch. She added that the monthly GST collection also surpassed Rs 1.70 lakh crore in a span of three months in the 2023-24 fiscal year. This also increased the average monthly collection to Rs 1.67 lakh crore for the ongoing fiscal year. 


As such, the GST collections are projected to rise by nearly 11 per cent in the upcoming fiscal year. “If the monthly collection is Rs 1.67 lakh crore this fiscal, a growth of 11 per cent would be Rs 1.80-1.85 lakh crore monthly collections. This should be the new normal for GST collection in the next fiscal,” Malhotra noted. 


Commenting on the duty cut on imports of mobile phone spare parts, Malhotra stated that the revenue implication of the move stands near Rs 500 crore. He further explained that the customs duty on mobile spare parts and components has been slashed to 10 per cent to help make the tax structure more easy, efficient, lower classification disputes, and boost investment in the mobile manufacturing sector. 


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“The duty cut simplifies the taxation structure and classification dispute because some of the mobile parts were at 15 per cent, some at 10 per cent, so there were some overlap. So, to avoid disputes, we have reduced tax rates to 10 per cent,” the official said.