Collections from Goods & Services Tax (GST) in September rose to ₹1.63 lakh crore year-on-year, data released by the Finance Ministry on Sunday showed. Though this is the second highest collection in the fiscal year, the pace of growth has slowed down.
Collections in September relate to goods consumed and services availed in August. Experts feel the data show that the consumption demand is picking up. Significantly, key States are showing double-digit growth. “The revenues for September are 10 per cent higher than the GST revenues in the same month last year. 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,” a Finance Ministry statement said. It is for the fourth time that the gross GST collections have crossed the ₹1.60 lakh crore mark in the current fiscal.
- Also Read: India notifies 28% GST and key changes for overseas online gaming platforms, effective October 1
MS Mani, Partner with Deloitte India, said GST collections of ₹1.6 lakh crore representing transactions in the first month of the four-month-long festive season augur well for the coming months and are in line with the other high frequency indicators which reflect a positive uptick in the economy.
Echoing the sentiment, Saurabh Agarwal, Tax Partner with EY India said increased GST collections indicate that the Indian economy continues to be on a stable growth trajectory. “The coming months being the festive season have a decisive impact on the economy as they derive the overall consumption,” he said.
Both Mani and Agrawal noted good growth not just in the bigger States but small provinces as well. ”It is noticeable that large production and consumption States such as Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh have shown an increase ranging from 17-21 per cent compared to the average of 10 per cent,“ said Mani. Agrawal said consistent rise in collections in the State/UTs of J&K, Manipur, Arunachal Pradesh and Ladakh also indicates increased consumption which is an indicator of heightened commercial activities in these parts.