GST Collections Climb Higher In February To Rs 1.84 Lakh Crore

The Goods and Services Tax collection in the month climbed 9.1 per cent to Rs 1.84 lakh crore in the month under review, as compared to Rs 1.96 lakh crore collections recorded in the preceding month.

The domestic economy recovered in the third quarter, with growth hitting 6.2 per cent as compared to 5.6 per cent reported in the preceding month.

Source : ClearTax

The Indian economy clocked a jump in its GST collections in February, official data released on Friday showed. The Goods and Services Tax (GST) collection in the month climbed 9.1 per cent to Rs 1.84 lakh crore in the month under review, as compared to Rs 1.96 lakh crore collections recorded in the preceding month.

The net GST collections also stood 8.1 per cent higher from the previous year, after discounting for refunds. However, sequentially, the collections in February was lower. The pace of GST collection also increased in Janaury to hit a nine-month high of 12.3 per cent. 

The domestic economy recovered in the third quarter, with growth hitting 6.2 per cent as compared to 5.6 per cent reported in the preceding month.

Indian Economy Expected To Fare Better

Vivek Jalan, Partner, Tax Connect Advisory Services, noted, "This year's GST Collection is almost on target and that is one of the reasons that the actual fiscal deficit for FY24-25 of 4.8 per cent is estimated to be below the budgeted 4.9 per cent. On a different note, it is heartening to see that the growth of GST on import is 7.2 per cent only vis-a-vis growth in domestic GST Collection of 10.1 per cent. If at all, it is an indication that India is getting more 'atmanirbhar'. Coupled with this, an increase of 15.8 per cent in refunds (including export refunds) is a positive sign. It shows that now India is also increasingly 'making for the world'. Overall, amidst geo-political headwinds, India seems to be managing well."

In a press conference post the GDP release, CEA V Anantha Nageswaran said that India could hit the 7.6 per cent growth target as the government’s push for capital expenditure and spending related to the Maha Kumbh 2025 is expected to push forward the domestic economy in the last quarter.