Government is on track to exceed its total tax collection target for the current financial year, with direct tax and GST collection data suggesting potential it is more than enough. The latest trends indicate that the government can comfortably surpass the target of Rs 33 lakh crore and collect more than Rs 34.5 lakh crore in total tax revenue during the financial year.
Outstanding performance in direct taxes
According to a recent report, the driving force behind this economic success is impressive performance of direct taxes and Goods and Services Tax (GST) collection Interim data shows that tax collection direct grew significantly at the rate of 20.66 per cent per annum as on 17 December 2023, an impressive feat in the ongoing financial year
The accumulation of refunds in FY24 stood at Rs 13.7 lakh crore, marking a sharp increase over the Rs 11.35 lakh crore recorded during the same period last fiscal. Breaking down direct tax collections, corporate tax contributed Rs 6,94,798 crore (excluding refunds) while personal income taxes including securities transaction tax (STT) stood at Rs 6,72,962 crore (excluding cash). which has been returned).
Exceed budget goals
The government had proposed a budget of Rs 18.22 lakh crore from direct taxes for FY 2023-24 (FY 24). The Central Board of Direct Taxes (CBDT) has issued refunds totaling Rs 225,251 crore in FY24 to December 17, 2023, a statement released on Monday revealed.
Complex GST Collection
At the same time, Central GST collections till November 2023 stood at around Rs 5.4 lakh crore, showing an increase of 14 per cent over the same period last fiscal, the government said has set a target of Rs 9.56 lakh crore from central GST. Notably, monthly GST collections in November crossed the Rs 1.60 lakh crore mark for the sixth time in 24 economies to reach Rs 1.68 lakh crore.
Finance Minister Nirmala Sitharaman expressed satisfaction over the performance, saying the average monthly collection stood at Rs 1.66 lakh crore in the current fiscal, a notable increase compared to Rs 1.5 lakh crore in FY23.
Concerns in Customs and Excise Tax Collection
However, the same speed was not observed in customized customs and tax collection systems. Customs collections largely stagnated, totaling Rs 1.24 crore till October 2023, against Rs 1.23 crore in the corresponding period last year
Despite challenges in reporting and invoicing, direct taxes and GST will compensate for the strong performance, providing good prospects for the government’s overall tax revenue in the current fiscal. This success is good news for the Indian economy, showing resilience and effective monetary management in the face of frontline economic uncertainty.
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