Andhra Pradesh has witnessed the highest-ever GST collection in April 2023 since the introduction of the GST system. The state released Rs. 4,329 crore gross GST revenue for the month.
Almost 70% of the increase has been noted in the GST revenue of the state in the last four years. The strong GST mop-up in Andhra Pradesh is reportedly strengthening due to increasing consumer spending, increased tax compliance, and renewed economic activity following the COVID-19 second wave in 2021.
The GST collection had been impacted by the record jump in Covid-19 cases during the peak of the first and second waves.
In Andhra Pradesh, the average monthly revenue was Rs. 2500 crore throughout 2020 and 2021.
Factually, rising income levels are the driving demand. The country’s growth can be seen through the rising GST numbers, despite the concerns that a recession is taking shape.
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Despite the on-and-off surge in COVID-19 cases over the past two years, Rao said that the economy has largely remained unaffected. According to Pulsus Group CEO Gedela Srinubabu, Andhra Pradesh’s rural economy has greatly improved in recent years. This has resulted in the increasing spending power of rural consumers, which has fueled economic activity and goods and service consumption.
According to Srinubabu, the post-COVID-19 economic recovery and factors including a rise in the amount of money in circulation have added to the GST mop-up. As per the data gathered by the Union Ministry of Corporate Affairs, the number of new firms registered in Andhra Pradesh has steadily increased.
In Andhra Pradesh, 3,328 new businesses were registered during the fiscal year 2021–2022, as compared to 2,300 in the year 2016-17. As of March 2022, there were roughly 26,600 active registered firms. GST income is also improved by the rising number of new business registrations.
It is the highest-ever GST collection in India’s history which is Rs. 1.87 lakh crore for April 2023. In April 2022, the GST collection was Rs. 1.67 crore (previous year’s record) now it has been broken. In comparison to February 2023, when 8.1 crore e-way bills were generated, the total number of e-way bills generated in March 2023 was 9 crore, an increase of 11%.
The highest-ever GST collection for a single day is noted in April. On April 20, there were 9.8 lakh transactions that made the total collection of around Rs. 66,228 crore. The same GST data, however, exceeded the 3000 crore mark for all the months in 2022.
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In 2022, the GST revenue even surpassed the 4,000 crore mark in the year of 2022. The growth at the same pace continued in the first four months of 2023. Professor S. Pulla Rao, head of the economics department at Andhra University, noted that the rising GST revenues align with a high-frequency signal of robust consumer demand and growth.
