Goods and services tax (GST) collections in September are likely to be about Rs 1.45 trillion, a senior official told FE, adding that the monthly average mop-up in FY23 could be around Rs 1.55 trillion.
Average monthly GST collections rose to Rs 1.49 trillion/month in the first five months of the current financial year compared with Rs 1.23 trillion/month in full FY22. Bedsides the Centre, the higher collections will also aid states, which were fearing a revenue shock due to the end of the five-year guaranteed GST shortfall compensation mechanism on June 30.
“Improved business activity is expected to yield better collections in the coming months,” the official said. The GST data for September will be released on October 1.
On September 14, revenue secretary Tarun Bajaj had asked revenue officers to stabilise GST collections to around Rs 1.5 trillion from October data, which is to be released on November 1.
At Rs 1.44 trillion, monthly gross GST collections in August (July transactions) crossed the over Rs 1.4-trillion mark for the sixth month in a row, reflecting improved compliance. GST collections reached a record Rs 1.68 trillion in April (March transactions).