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Sept GST receipts at close to Rs 1.48 trn

In addition to a pick-up in economic activity, the higher GST collections in recent months have been driven by elevated inflation and enhanced compliance.

Sept GST receipts at close to Rs 1.48 trn
On September 14, revenue secretary Tarun Bajaj had asked revenue officers to try and ensure GST collections of around Rs 1.5 trillion from October onwards.

Gross goods and services tax (GST) collections came in at Rs 1,47,686 crore in September (August transactions), reflecting a stabilisation of the monthly revenue from the consumption tax at above Rs 1.45 trillion.

The mop-up has remained above the Rs 1.4-trillion mark for the seventh month in a row. Average monthly collections in April-September this fiscal were close to Rs 1.49 trillion, compared with Rs 1.23 trillion in FY22. On September 14, revenue secretary Tarun Bajaj had asked revenue officers to try and ensure GST collections of around Rs 1.5 trillion from October onwards.

In addition to a pick-up in economic activity, the higher GST collections in recent months have been driven by elevated inflation and enhanced compliance.

Also Read: Inflation at manageable level, says Finance Minister Nirmala Sitharaman

However, the tax numbers for August released by the Controller General of Accounts (CGA) on Thursday showed early signs of a plateauing of the higher revenue buoyancy, seen since the latter half of last financial year. The Centre’s gross (post-refunds) overall tax collections for August stood at Rs 1.51 trillion, down 8% from the year-ago month. Corporation tax, personal income tax, excise duty, customs duty and Central GST saw a year-on-year decline in collections in August 2022, as the benefit of the low base effect ceased to exist.

The finance ministry said on Saturday about the September GST collections: “The government has settled 31,880 crore to CGST and27,403 crore to SGST from IGST as regular settlement. The total revenue of Centre and the states after regular settlements in the month of September 2022 is 57,151 crore for CGST and59,216 crore for the SGST.”

The revenues for September 2022 are 26% higher than the GST revenues in the same month last year. During the month, revenues from import of goods were 39% higher on year and the revenues from domestic transaction (including import of services) were up 22%.

During the month of August, 77 million e-way bills were generated, compared with 75 million in July 2022.

MS Mani, partner at Deloitte India, said: “The collections in the next three months are expected to be even more robust due to the higher consumption expected during the festive season and the mandatory e-invoice protocol for taxpayers having turnover above Rs 10 crore from October 1. The state-wise data reflects the good growth in collections across key states with many large states demonstrating an above 20% increase in collections compared to the last year.”

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