“The nearly 10% increase in collection volume compared to last year reflects the company’s economic stability and strong tax compliance,” said Abhishek Jain, partner and head of indirect tax at KPMG India.
The average monthly collection for fiscal 25 was Rs 1.84 crore and Rs 1.68 crore in the previous fiscal year. “As fiscal year adjust and check, we can expect further growth in the next set of collections to grow,” Jain said.
April collections are usually higher. “This continued revenue growth highlights the government’s continued focus on strengthening compliance and expanding its tax base,” said Grant Thornton Bharat, partner.
Curb income leaks
In April 2024, the GST collection rate reached a record 2.1 billion rupees. “Initiatives such as the Invoice Matching System (IMS) are expected to further curb revenue leaks by increasing the accuracy of tax reporting and reducing disparities, thereby enhancing the strength and resilience of the GST framework,” said Arora. Karnataka, Telangana, Andhra Pradesh and Tamil Nadu have a range of -1% to 7%, which is very unusual for the months of the fiscal year. Bihar, Meghalaya, Goa and Union Territories had an impressive annual growth rate of over 20% in March.
“The growth rate of GST collection remains large between key manufacturing and consumer states,” said Ms Mani, partner at Deloitte India. “It is necessary to understand the same reasons by evaluating sector growth and compliance rates in these states.”
Total refunds in March rose 41% to Rs 19,615 crore from a year ago. GST revenue in March was Rs 1.76 crore after adjusting for refunds, up 7.3% a year ago. “People can expect to be more stringent in GST reviews and reviews to block leaks. The slowdown in consumption is an area that needs to be addressed,” said PWC partner Pratik Sinha.
