GST collection rises 10.2% to Rs 1.62 lk cr in Sep; crosses Rs 1.60 lk cr mark for 4th time in FY24

As a result, the total revenue for the month post settlement was Rs 63,555 crore for the Centre and Rs 65,235 crore for State GST.

By: ENS Economic Bureau

New Delhi | Updated: October 2, 2023 06:45 AM IST

4 min read

Gross Goods and Services Tax, GST collections, economic activities, Revenues from domestic transactions, indian express news

In September, the government settled Rs 33,736 crore to Central GST and Rs 27,578 crore to State GST from Integrated GST. (Express File Photo)

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Gross Goods and Services Tax (GST) collections grew 10.2 per cent to over Rs 1.62 lakh crore in September (for sales in August), crossing the Rs 1.6 lakh crore mark for the fourth time in the current financial year, data released by the Finance Ministry on Sunday showed. Pickup in consumption and economic activity along with settlement through payments by businesses before the limitation deadline of September 30 for notices related to financial year 2017-18 seems to have aided the rise in GST collections.

In August, the GST collection was Rs 1,59,069 crore. The total GST collections stood at Rs 1,62,712 crore in September, out of which Central GST — the tax levied on intra-state supplies of goods and services by the Centre — was Rs 29,818 crore, State GST — the tax levied on intra-state supplies of goods and services by the states — was Rs 37,657 crore, Integrated GST — the tax levied on all inter-state supplies of goods and services — was Rs 83,623 crore (including Rs 41,145 crore collected on import of goods) and cess was Rs 11,613 crore (including Rs 881 crore collected on import of goods).

Revenues from domestic transactions (including import of services) were 14 per cent higher than revenues from these sources during the same month last year, the Finance Ministry said in its statement. “The gross GST collection for the first half of the FY 2023-24 ending September, 2023 [Rs 9,92,508 crore] is 11% higher than the gross GST collection in the first half of FY 2022-23 [Rs 8,93,334 crore]. The average monthly gross collection in FY 2023-24 is Rs 1.65 lakh crore, which is 11% higher than average monthly gross collection for first half of FY 2022-23 where it was Rs 1.49 lakh crore,” the ministry said.

With the recent spate of notices being sent by the GST authorities for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilised for the financial 2017-18, tax experts said the end of the limitation period on September 30 could also have prompted some businesses to settle their pending dues before the deadline and thus, would have added to the revenues.

“With the normal period of limitation for FY17-18 ending on 30th September, some of this increased collection could be linked to businesses having settled issues with payment of taxes for the said period. While 1.6 lakh crore plus seems to be the new normal, this could see a further uptick with the festive season round the corner,” Abhishek Jain, Indirect Tax Head & Partner, KPMG said.

Some other tax experts noted that the pickup could also be attributed to the beginning of the festive season. “GST collections of Rs 1.6 lakh crore representing the transactions in the first month of the festive season of the four-month long festive season augurs well for the coming months and is in line with the other high frequency indicators which reflect a positive uptick in the economy…it is noticeable that large production and consumption states such as Maharashtra, Karnataka, Tamil Nadu, AP have shown an increase ranging from17% to 21% compared to the average of 10%,” MS Mani, Partner, Deloitte India, said.

In September, the government settled Rs 33,736 crore to Central GST and Rs 27,578 crore to State GST from Integrated GST. As a result, the total revenue for the month post settlement was Rs 63,555 crore for the Centre and Rs 65,235 crore for State GST.

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