Go Back04-Nov-2023
As North Block gears up for budget preparations which will be announced on February 1, 2024, the central board of Indirect Taxes and Customs (CBIC) is aiming at keeping healthy growth targets for GST Collections. According to sources, “the government is looking at setting 14-15% growth for GST Collections in the upcoming Budget for FY2024-25.”
This would mean “achieving an average monthly collection of ₹1.80 to ₹1.90 lakh crore in the next fiscal,” sources added.
With the setting of the target, a roadmap has also been drawn to achieve this, which includes, “working towards better compliance, moving ahead with the rate rationalisation exercise, more of data analytics through AI, data mapping, measures to strengthen the system to plug revenue leakages, enhanced scrutiny while allocating new GST registrations and restricting input tax credits,” sources added.
Not just this, apart from the strategy, the government has also identified the sectors which will help achieve these numbers. “Sectors such as online gaming, casinos, and race courses will add to the revenues with the clarity of 28% GST rate, the growing presence of digital economy and e-commerce players, new economy areas such as crypto and virtual digital assets and increased domestic consumption especially visible via growth in FMCG and consumer goods will help the government reach these numbers,” sources said.
Experts say that the asking rate is easily doable given the current trend of GST collections. It was on November 1, itself when the government announced the collections for the month of October which stood at ₹1,72,003 lakh crore. October collections are just the second-highest this year, but the second-highest since GST was introduced. GST revenue collected so far this Fiscal totals ₹11,64,511 crore, just 35% less than FY23’s full-year collections.
Khushbu Trivedi, Associate Director- Indirect Tax, Nangia Andersen India says, “In a plunge to surge the GST collections, Government is all gearing up to hit the revenues at higher growth rate with upcoming budget announcements. Compliance monitoring through an intelligence monitoring mechanism would be propitious in pulling off the growth targets by plugging revenue leakages. Also, recent measures in broadening of tax net through online gaming, cryptos and virtual digital assets might prove game changers in escalating revenues massively.”
Similarly, Archit Gupta, Founder and CEO, Clear, formerly known as ClearTax feels that, “With the coming of online gaming under tax ambit and uptake due to the festive season, there has been a spurt in GST collections. This trend shall continue for November and with increased coverage of GST.”
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