GST Breakdown: Understanding Revenue Trends in 2023-24

The majority of GST revenues in 2023-24 were generated from the 18% tax slab. A special group, led by Bihar Deputy CM, is exploring GST rate rationalization to increase revenue. Minister Nirmala Sitharaman assured that there is no friction between the Centre and states concerning GST shares.

Data presented in Parliament revealed that 70-75% of GST revenues in the 2023-24 fiscal year originated from the 18% tax slab, while the 12% slab accounted for just 5-6% of revenues.

Minister of State for Finance, Pankaj Choudhary, provided insights on GST collections under different slabs. The GST Council has formed a Group of Ministers, chaired by Bihar Deputy Chief Minister Samrat Chaudhary, tasked with evaluating GST rate rationalization and potential merger of slabs.

This discussion arises as the average GST rate falls below the revenue-neutral rate, now at 11.64%, prompting suggestions to adjust the tax structure.

(With inputs from agencies.)