GST mop-up rises 10% to over Rs 1.62 lakh cr in September due to better compliance

GST collections rose by 10 per cent due to better compliance to over ₹1.62 lakh crore in September, crossing the ₹1.6 lakh crore mark for the fourth time in FY24.

A statement issued by the finance ministry on Sunday (October 1) said that gross GST revenue collected last month was ₹1,62,712 crore. Of this, central GST was ₹29,818 crore, state GST was ₹37,657 crore, integrated GST was ₹83,623 crore (including ₹ 41,145 crore collected on import of goods) and cess was ₹11,613 crore (including ₹881 crore collected on import of goods).

The revenue in September 2023 was 10 per cent higher than the GST revenue of ₹1.47 lakh crore in the same month last year, added the statement.

"During the month, the revenues from domestic transactions (including import of services) are 14 per cent higher than the revenues from these sources during the same month last year. It is for the fourth time that gross GST collection has crossed ₹1.60 lakh crore mark in FY 2023-24," it said.

11 per cent increase

Gross GST collection in the first half (April-September) of FY24 stood at ₹9,92,508 crore, an increase of 11 per cent from the period a year-ago. Average monthly gross collection in April-September FY24 was ₹1.65 lakh crore, 11 per cent higher than the year-ago period, it said.

As the normal period of limitation for FY17-18 ended on September 30, some of this increased collection could be linked to businesses having settled issues with payment of taxes for the said period, said KPMG's Indirect Tax Head Abhishek Jain.

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, he said.

Uptick in the economy

According to Deloitte India partner M S Mani, the September GST collections augur well for the coming months of the festive season and is in line with the other high frequency indicators which reflect an uptick in the economy.

EY tax partner Saurabh Agarwal said increased GST collection indicates that the economy continues to be on a stable growth trajectory and rising collections from domestic transactions is an indicator that 'Make in India' policies of the government have started showcasing its impact.

Consistent rise in collections in J&K, Manipur, Arunachal Pradesh and Ladakh indicate an increased consumption in these areas, Agarwal said.

(With inputs from agencies)