India’s Goods and Services Tax (GST) collections have continued to surge in February 2023, with gross revenue collections reaching an impressive INR 1,49,577 crore ($20.14 billion USD). The figures reflect an upswing of 14.2% from the same period the previous year, with the collections representing transactions made in the previous month.
This is the fourth consecutive month that the GST collections have crossed the INR 1.40 lakh crore ($18.91 billion USD) mark, reaffirming the steady growth in economic activity across the country.
According to the Ministry of Finance, the Central GST collections stood at INR 27,105 crore ($3.66 billion USD), while State GST collections reached INR 32,898 crore ($4.45 billion USD) during the month. The Integrated GST collections, which come from the inter-state movement of goods and services, totaled INR 71,019 crore ($9.60 billion USD), while cess collections reached INR 18,555 crore ($2.51 billion USD).
Despite the ongoing COVID-19 pandemic, the latest GST collections have given a boost to the Indian government’s revenue targets. The collections have been largely attributed to the easing of lockdown restrictions and the increase in economic activity across various sectors.
The Finance Ministry stated that the latest GST collections indicate a healthy growth in domestic consumption and investment activities. The ministry also expressed confidence that the collections would continue to rise, given the overall positive trend in the Indian economy.
However, some experts have warned that the Indian economy is not yet out of the woods, and a few challenges may need to be addressed in the coming months. The rise in oil prices and the recent surge in inflation rates may impact consumer spending and lead to a slowdown in economic activity.
In addition, the ongoing COVID-19 pandemic continues to pose a significant threat to the Indian economy. While the vaccination drive has been progressing well, a potential third wave of infections could derail the progress made so far.
Nonetheless, the latest GST collections indicate that the Indian economy is on a steady path towards recovery, and the government’s efforts to boost economic activity are beginning to bear fruit.