Delhi’s GST revenue has achieved a significant increase of nearly 17% during the first half of the current fiscal year compared to the same period in 2022-23. This positive trend has instilled hope in the government, as it anticipates exceeding its estimated collection.
According to data, during the initial two quarters of 2023-24, the Delhi government collected a total of Rs. 19,101 crore from Value-Added Tax (VAT) and GST, exceeding the previous year’s collection of Rs. 16,352 crore between April 1 and September 30, 2022.
The ongoing festival season is expected to give a further boost to the revenue collection from the sale of goods and services, thereby fueling the city’s overall economy.
In April, the trade and taxes department declared the GST collection of Rs. 3,886 crore, Rs. 3,079 crore in May, Rs. 2,865 crore in June, Rs. 3,388 crore in July, Rs. 2,883 crore in August, and Rs. 2,998 crore in September.
Officials have noted a marginal increase in the taxpayer base, rising from approximately 7.6 lakh to over 7.8 lakh. With improved compliance and a thriving business environment, it is expected that tax collection will continue to improve.
An official stated that after two years of lockdown and sluggish economic activities, tax collections were lower in 2020-21 and 2021-22. However, they began recovering in the last financial year. The negative growth witnessed in 2020-21 was a consequence of the lockdown. Now, it can be said with confidence that collections have surpassed pre-pandemic economic activities.
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GST serves as the primary source of tax revenue for the Delhi government. The budget for 2023-24 projects a total receipt of Rs. 78,800 crore, with tax collection estimated at Rs. 53,565 crore, including GST and VAT earnings of Rs. 37,200 crore.
Officials emphasized that enhanced enforcement measures, meticulous verification of new GST applicants, utilization of data analysis tools to identify fraudsters, and vigilant monitoring of tax filing have all contributed to the significant improvement in collections.
During the initial six months, the VAT collection amounted to Rs. 3,381 crore, while the Delhi government received Rs. 7,630 crore as State GST and Rs. 8,021 crore as IGST settlement. VAT is imposed on specific petroleum products such as petrol, diesel, aviation turbine fuel, natural gas, and crude oil, while all other products and services fall under the purview of GST.
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Furthermore, in 2022-23, the government received Rs. 12,817 crore as GST compensation. However, it is important to note that this amount will not be available in the current financial year.
