GST Collections is one of the key indicators and high frequency macroeconomic data point

Collections of INR 1.6 Tn (+13% YoY) in March'23 concluded the thirteenth consecutive month of collections over the 1.4 Tn mark. Rises in import and domestic transaction revenues have been amongst the key reasons for sustained collection levels. For FY23, the revenues mopped up under GST amounted to INR 18.1 Tn (+22% YoY), with an average of INR 1.51 Tn being collected monthly.

Both from cyclical and structural perspective, India seems to be better placed vs rest of the World. Domestic high frequency indicators like GST collections, credit growth, PMI, etc point to elevated activity levels. India is expected to be one of the fastest growing economies in 2023. Policy reforms in the recent past, Government led Capex focus, stronger corporate Balance Sheets have potentially created a robust platform for a virtuous multi quarter cycle of growth

FY'23 saw a strong 23% YoY growth in GST collections, reaching Rs. 18.1 Trillion. Average GST collections also rose to Rs. 1.5 Trillion, on account of stronger compliance and inflation. March GST collections topped Rs. 1.6 Trillion and grew 13% YoY.