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New Delhi: The indirect tax collection for FY24 has exceeded the revised estimates (RE) of Rs 14.84 lakh crore by "a handsome margin", helped by a record GST mop-up, a top government official said.
Lauding the efforts of tax officials, Central Board of Indirect Taxes and Customs (CBIC) chairman Sanjay Kumar Agarwal, in a letter to field officials, said, "I am happy to inform that the indirect tax collections for the Financial Year 2023-24, including Customs and Union Excise Duty have exceeded the Revised Estimates by a handsome margin".
This achievement not only reflects professionalism but also underscores the strength of teamwork and perseverance within the CBIC community, he said, adding that "your relentless efforts have not gone unnoticed, and I extend my heartfelt appreciation to each and every member for their invaluable contributions throughout the year".
The gross GST mop up for 2023-24 also marks a milestone with the collection of Rs 20.18 lakh crore -- comprising state GST, Central GST, integrated GST and compensation cess -- exceeding the previous year's collection by an impressive 11.7 per cent, the CBIC chairman said.
The RE for central GST, including compensation cess, was Rs 9.57 lakh crore, while for excise duty it was Rs 3.08 lakh crore and customs Rs 2.19 lakh crore.
In the Interim Budget presented in February this year, the government raised the target for direct tax collection in FY24 (April 2023 to March 2024) to Rs 19.45 lakh crore, while for indirect taxes -- including GST, Customs and Excise -- the target was lowered to Rs 14.84 lakh crore.
The GST remained at a high point during the last fiscal with collections reaching a record high of Rs 1.87 lakh crore in April 2023 and the second-highest collection coming in at Rs 1.78 lakh crore in March 2024.
The gross tax collection target, as per the revised estimate, stood at Rs 34.37 lakh crore for FY24.
Tax collection is a reflection of economic activity. India is recording a world-beating growth rate and is projected to grow at 7.6 per cent in 2023-24, as per NSO estimates.
Domestic consumption and government capex are the main drivers of the country's economic momentum.
Indian economy grew by over 8 per cent for three consecutive quarters (April-December), and various agencies have revised the growth estimates of India for FY24 closer to 8 per cent.
SBI Research and Moody’s expect GDP growth for FY24 to be 8 per cent. Fitch and Barclays raised their growth forecast to 7.8 per cent.