Goods and Services Tax revenues in May are likely at Rs. 1.4 lakh crore. GST revenue in April was at record high of Rs. 1.67 lakh crore. GST revenue in May last year stood at Rs. 1.02 lakh crore. April revenue is higher as it includes quarterly return filings.
7.14 crore e-way bills worth Rs. 22.72 lakh crore value generated in the month. Average monthly GST revenue in FY23 is expected at Rs 1.4 lakh crore. Average monthly GST revenue in FY22 at Rs 1.23 lakh crore.
High revenue growth will help the government provide for additional expenses this year on increased fertiliser subsidy, food subsidy, excise duty cuts, etc. There is a risk of exceeding fiscal deficit in FY23 because of less than Rs. 1 lakh crore additional borrowing expected in H2.
India‘s fertiliser subsidy is expected to rise to Rs 2.46 lakh crore against budgeted Rs 1.09 lakh crore. India has also extended the food subsidy in this year. To battle inflation, India recently reduced the excise duty on petrol and diesel. It has allowed duty free import of crude sunflower and crude soybean oil for two years to check food inflation. It has banned sugar export beyond 100 lakh metric tonnes in this fiscal. All these steps will hit revenue and thus the good growth of GST revenue will be helpful to the government exchequer.
