GST collection in Sep likely to touch Rs 1.5 lakh crore on improvement in biz activities; what do experts say? | The Financial Express

GST collection in Sep likely to touch Rs 1.5 lakh crore on improvement in biz activities; what do experts say?

Earlier this month, Union revenue secretary Tarun Bajaj urged the indirect tax officers to maintain the GST collection equal to or above Rs 1.5 lakh crore, starting from October 2022.

GST collection in Sep likely to touch Rs 1.5 lakh crore on improvement in biz activities; what do experts say?
Experts believe that the trend in the current financial year has set the new normal for GST mop-up at Rs 1.4 lakh crore.

Goods and services tax (GST) revenue collection in September is expected to touch Rs 1.5 lakh crore, experts have estimated. The increase in the collection will be led by improved business activity in the past few months. Furthermore, the e-way bills generated by movement of goods aided the upward trend of GST collections. “An increase in GST will be driven by an upward economic trajectory led by strong demand in the economy, e-way bill generation and better compliance,” Anita Gandhi, Head of Institutional Business, Arihant Capital, told FinancialExpress.com. Gandhi also stated that with the onset of the festive season, the GST collections in the coming months is expected to be robust, driven by higher consumer spending.

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It may be noted that the GST revenue for August saw a jump of over 28 per cent on-year owing to the economic recovery. The trajectory is expected to stay elevated as experts believe that this month’s collection may be in the vicinity of Rs 1.5 trillion. Experts believe that the trend in the current financial year has set the new normal for GST mop-up at Rs 1.4 lakh crore.

“The robustness of the GST collections over the past few months is expected to continue in the coming months with the onset of the festive season which leads to higher primary despatches and retail consumption,” MS Mani, Partner, Deloitte, told FinancialExpress.com. He added that it would be interesting to see if any collection data is shared on an industry basis to enable a correlation with that industry’s economic performance.

The robust GST collections is a clear indicator of economic revival, Rajat Bose, Partner Shardul Amarchand Mangaldas, told FinancialExpress.com. Bose also added, saying that the continuing surge in GST collections is mainly due to a combination of factors such as better compliance, crackdown on evasion, inflationary trends, increase in imports and general increase in customer spend. “The GST revenue collections in October should go up further owing to the ongoing festive season,” he added.

Earlier this month, Union revenue secretary Tarun Bajaj urged the indirect tax officers to maintain the GST collection equal to or above Rs 1.5 lakh crore, starting from October 2022. The high collections highlight an improved compliance and economic growth post pandemic.

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