Do Not Call
GST collections are done to bring transparency and simplify the taxation process for citizens. It has eliminated the cascading tax effect. Also, GST benefits small businesses (with a turnover of Rs. 20 Lakhs to Rs. 75 Lakhs) since it enables them to employ the GST composition plan to reduce their taxes.
In India, goods and services have been divided into four different tax slabs through which monthly GST collection is done. Below is the table you can refer to.
Applicable Tax Percentage |
Products |
Services |
|---|---|---|
5% |
Edible items, Petroleum products, Fertilizers, Medicines, Apparels, Handicrafts, etc |
Print media, Flight tickets, Tailoring, Tour operator, etc. |
12% |
Processed food, Dairy products, Cooking utensils, Dryfruits, etc |
Hotel stays, Business class flight tickets, Real estate constructions, etc |
18% |
Household products, Capital goods, Eatables, Make-up and beauty, Electronics, etc |
Parties, Restaurants, Telecom and IT services, etc. |
28% |
Caffeinated beverages, Tobacco, CNG, LPG, AC, Fax machines, etc |
5-star hotel stays, Entertainment, Gambling, Sports events, etc |
You can learn more about the GST slab rates for different goods and services in our article GST Rates for a more detailed view.
GST revenue fluctuates month to month owing to varying collections from multiple industries. Here’s a closer look at yearly GST revenue collection data.
Financial Year |
GST Collection Data |
|---|---|
FY 2021-22 |
Rs. 14,87,313 Crores |
FY 2020-21 |
Rs. 11,36,803 Crores |
FY 2019-20 |
Rs. 12,22,117 Crores |
FY 2018-19 |
Rs. 11,77,370 Crores |
GST collection data demonstrates the financial dynamism of a country. It serves as an important indicator of a country’s financial health. It also aids in determining if GST collections are increasing or decreasing monthly.
Following are a few points that will explain why GST collections are considered a gauge for economic growth.
Fills the Financial Rift - A surge in GST earnings reduces the government's fiscal imbalance. Furthermore, international organisations assess a sovereign nation based on a number of factors, the most crucial of which is the fiscal deficit. Good scores strengthen investors ’ confidence, resulting in an infusion of capital that can contribute to the country’s development.
Good Economic Health - Larger GST revenue will indicate the good financial health of the nation which aids in maintaining a good reputation of the country. Moreover, the government frequently enacts laws that encourage companies to expand, which increases the overall collection amount as well.
Increased Consumption - Rising GST collections indicate that consumers are increasingly purchasing products and using services that are GST applicable. This inevitably leads to the country's good Gross Domestic Product (GDP), which is the most important measure for determining the economy's health.
Government Expenditure - GST earnings have become the government's most important source of increasing the country’s revenue. The government uses these collections in a multitude of things that contribute to the nation’s growth and development. A few of them are social welfare programs, centrally sponsored schemes, poor subsidies, to develop infrastructure, defence, and so on.
All indirect taxes levied by the Indian Central and State governments on goods and services have been eliminated by the GST. Goods and Services Tax has had a significant influence on the economy, affecting a wide range of industries in various ways. The government's sole goal in establishing this was to promote transparency and make the taxing procedure easier.
Aside from that, the earnings are utilised for a variety of purposes to help in the progress of the nation. So, the next time you pay it, think of it as a contribution to the country's growth and expansion.
In April 2022, Odisha registered the highest-ever state GST collection of Rs. 1,714.78 Crores. In April 2021, the state GST collection was Rs. 1,126.67 Crores and the present collection is demonstrating that the state has grown by 52.20% over the previous month.
In FY 2020-21, the total GST revenue collection was Rs. 11,36,803 Crores.
The GST collected from consumers is transferred to the federal and state governments and serves as a revenue generator for the country's operations. These collections are used by the government for a variety of purposes that contribute to the nation's growth and development. A few of them are social welfare programs, government-sponsored schemes, infrastructure development, defence, and so on.
Academy by Bajaj Markets
10754
Navigate the tax maze with ease! Uncover Income Tax 101, demystify jargon with Terms for Beginners, and choose between Old or New Regimes.
7268
Unlock the world of credit! From picking the perfect card to savvy loan management, navigate wisely.
1585
Money Management and Financial Planning covers personal finance basics, setting goals, budgeting...
2881
Explore the investment cosmos! From beginner's guides to sharp-witted strategies, explore India's treasure trove of options.
144
Discover essential insights on various types of insurance in India.
1114
Welcome to Tech in Finance, where we explore the exciting intersection of technology and finance...
.png)
