Financial Services News

GST revenue growth slowed to 10.2% in September


Photo used for representation purpose only.

Photo used for representation purpose only.

Growth in India’s gross GST revenues slowed to 10.2% in September from around 10.8% in the previous two months, but collections improved 2.3% over August revenues to touch ₹1,62,712 crore.

Revenues from domestic transactions (including import of services) are 14% higher than the revenues from these sources during the same month last year, and this is the fourth time that the gross GST kitty has crossed ₹1.60 lakh crore mark in 2023-24, the Finance Ministry said.

The revenues included Central GST collections of ₹29,818 crore, State GST of ₹37,657 crore, and Integrated GST of ₹83,623 crore, which included ₹41,145 crore collected on import of goods. GST compensation cess collections were ₹11,613 crore (including ₹881 crore collected on import of goods).

“The government has settled ₹33,736 crore to CGST and ₹27,578 crore to SGST from IGST. The total revenue of Centre and the States in the month of September, 2023 after regular settlement is ₹63,555 crore for CGST and ₹65,235 crore for the SGST,” the Finance Ministry said.

Revenues in strife-torn Manipur, which recovered from a contraction in August, recorded the highest growth among States in September, rising 47%.

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

Bihar was the only State to report a contraction in GST collections in September, with revenues down 5%. The Union Territories of Lakshadweep and Andaman and Nicobar Islands clocked a sharp decline in revenues, which fell 45% and 30% year-on-year, respectively. By contrast, revenues shot up 81% in the Union territory of Ladakh.

Revenues from goods imports, which had recovered from two months of contraction to grow 3% in August, slipped back to shrink again in September, albeit by a fraction. While the Finance Ministry didn’t specify the extent of decline in its statement, back-of-the-envelope calculations show GST revenues from goods imports dropped 0.11% from last September.

A part of the rise in September’s revenues could have been spurred by businesses settling pending tax dues since the start of the GST regime in 2017-18, tax experts reckoned.

”With normal period of limitation for FY 17-18 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,” said Abhishek Jain, indirect tax head and partner at KPMG. Revenues may rise further uptick with the festive season round the corner, he added.


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