Understanding Goods and Services Tax Revenue in India
Goods and Services Tax (GST) collections are a vital source of revenue for the Indian government, recently surpassing ₹20 lakh crore in FY 2023-24. This article explains the composition of GST revenue, detailing monthly collection trends and the breakdown of CGST, SGST, IGST, and cess. It also highlights the varying contributions to GST revenue from different business types and provides historical data since 2017, showcasing the significance of digital tax administration.
Understanding Goods and Services Tax Revenue in India
The Indian government relies on various sources for its revenue, with Goods and Services Tax (GST) collections being a significant contributor. In the fiscal year 2023-24, India's GST revenue surpassed all previous records, exceeding the ₹20 lakh crore mark. This achievement highlights the economy's resilience and the effectiveness of digital tax administration initiatives.
What Constitutes GST Collection?
GST collections have consistently exceeded ₹1.4 lakh crore for the past seven months, although they have not yet regularly crossed the ₹1.5 lakh crore threshold.
The country achieved a record GST collection of ₹1.67 lakh crore in April 2022, which remains the highest monthly collection to date. In October 2024, the total GST collection amounted to ₹1.43 lakh crore, marking a 28% increase year-over-year.
The breakdown for October 2024 showed Central GST (CGST) at ₹33,821 crore, State GST (SGST) at ₹41,864 crore, Integrated GST (IGST) at ₹99,111 crore, and cess at ₹12,550 crore. Both domestic transactions and imports demonstrated growth, with increases of 10.6% and 3.9%, respectively, compared to the previous year.
Business Type Contributions to GST Revenue
While official government data on specific sector contributions to GST collection is not yet available, a breakdown based on business entity types offers insights:
| Business type | Percentage of GST Collection |
|---|---|
| Public Ltd. Company | 34.83% |
| Private Ltd. Company | 27.94% |
| Proprietorship | 13.28% |
| Public Sector Undertaking | 9.64% |
| Partnership | 7.29% |
| Society/ Club/ Trust/ AOP | 1.38% |
| Limited Liability Partnership | 1.18% |
| Government Department | 0.99% |
| Statutory Body | 0.38% |
| Foreign Company | 0.38% |
| Hindu Undivided Family | 0.25% |
| Local Authority | 0.21% |
| Unlimited Company | 0.01% |
| Foreign Limited Liability Partnership | 0.00% |
| Any other body notified by committee | 0.00% |
| Others | 2.24% |
| Total | 100% |
Historical GST Collection Data (FY 2017-18 to FY 2023-24)
Here is a summary of annual GST collections in India since its implementation:
| Year | GST Collection (Rs. In Crores) |
|---|---|
| FY 2017-18 | 7.19 |
| FY 2018-19 | 11.77 |
| FY 2019-20 | 12.22 |
| FY 2020-21 | 11.36 |
| FY 2021-22 | 14.76 |
| FY 2022-23 | 18.10 |
| FY 2023-24 | 20.18 |
GST Revenue Trends
A visual comparison of GST revenue collection for the current fiscal year (YTD Sept'24) against the previous year would typically illustrate ongoing trends.
Key GST Collection Statistics
Publicly listed companies, despite representing only 0.62% of the total taxpayer base, contribute approximately 35.29% of the overall GST revenues. In contrast, proprietorships, which constitute the largest portion of the taxpayer base at 80.18%, contribute about 13.35% of the total GST revenue. Public sector undertakings also play a significant role, contributing 9.12% of the total GST revenue while making up merely 0.02% of the taxpayer base. More detailed GST statistics are available on the official GST portal.