Gross GST collection rises 10.2% to over Rs 1.62 trillion in September

Gross goods and services tax (GST) collection rose 10.2 per cent to over Rs 1.62 trillion in September, crossing the Rs 1.6 trillion mark for the fourth time in the current financial year, the finance ministry said on Sunday.

GST collection in the first half of this financial year reported 11 per cent growth to touch Rs 9.92 trillion compared to the same period a year ago.

The GST collection stood at Rs 1.47 trillion during the same month last year. Similar annualised surge was reported in August at Rs 1.59 trillion. The September mop-up takes the average monthly collection to Rs 1.65 trillion this financial year.

The finance ministry noted that the average monthly gross GST collection stood at Rs 1.65 trillion in the first six months of 2023-24, which is 11 per cent higher than in the first half of 2022-23.

The Centre expects GST collections to rise by 12 per cent in the current financial year.

According to experts, the revenue collection of September represents the transactions in the first month of the four-month-long festival season – indicating similar or even higher growth in the coming months.

“While the revenues are 10 per cent higher on an overall basis, the increase of 14 per cent on domestic transactions ties in well with several macro-economic indicators, which reflect the growth in domestic production and consumption, " said MS Mani, partner, Deloitte India.

During September, CGST is Rs 29,818 crore, SGST is Rs 37,657 crore, IGST is Rs 83,623 crore (including Rs 41,145 crore collected on import of goods) and cess is Rs 11,613 crore (including Rs 881 crore collected on the import of goods).

The government has settled Rs 33,736 crore to CGST and Rs 27,578 crore to SGST from IGST. The total revenues of Centre and states in September, after the regular settlement, is Rs 63,555 crore for CGST and Rs 65,235 crore for the SGST.

The revenues from domestic transactions (including the import of services) are 14 per cent higher than the revenues from these sources during the same month last year.

“The increase in GST collections from domestic transactions is an indicator that the ‘make in India’ policies of the Government have started showcasing its impact. And the overall economy continues to be on a stable growth trajectory compared to other parts of the world, said Saurabh Agarwal, Tax Partner, EY.

State-wise, high consumption states such as Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh have shown an increase ranging from 17 per cent to 21 per cent compared to the average of 10 per cent.

Consistent increase in collections in the state/ Union Territories of J&K, Manipur, Arunachal Pradesh and Ladakh also indicated increased consumption, an indicator of increased commercial activities in these parts, said Agarwal.

GST revenues in Telangana grew 33 per cent, followed by Jammu and Kashmir (32 per cent), Arunachal Pradesh (27 per cent), Tamil Nadu (21 per cent) and Karnataka (20 per cent).

Bihar was the only state to report a contraction in GST collections in September, with revenues down by 5 per cent.

The Union Territories of Lakshadweep and Andaman and Nicobar Islands also saw a sharp decline in revenues, which fell 45 per cent and 30 per cent year-on-year (Y-o-Y), respectively.

In contrast, the revenues shot up 81 per cent in Ladakh.

On an uptrend 
 

> High mop-up due to the start of four-month festival season, say experts 

> Average monthly GST collection at Rs 1.65 trn in 

the ongoing financial year

> It is 11% higher compared to the same period last financial year 

> The Centre expects collections to rise by 12% 

this financial year