GST collections rise 6.5% YoY to Rs 1.73 lakh crore in September

GST collections rise 6.5% YoY to Rs 1.73 lakh crore in September

India’s goods and services tax (GST) collections declined to Rs 1.73 lakh crore in September compared with Rs 1.75 lakh crore in the previous month, according to data released on October 1.

The pace of growth of GST was 6.5 percent in September, as the country had recorded Rs 1.62 lakh crore in GST revenue in September 2023. This is the second month of single digit rise in collections and lowest pace of growth in 39 months. In June, gross GST collections had expanded 7.7 percent.

The pace of average GST collections has declined to Rs 1.77 lakh crore monthly in the second quarter compared with Rs 1.86 lakh crore in the first quarter of FY25.

"While YTD GST revenues (September 2024) has still grown by over 9%, the monthly growth is perhaps less than expected. This may need a closer look by the GST council , particularly in the wake of rate rationalisation excercise. However, with festive seasons coming, the collection for next couple of months might be better," said Pratik Jain, Partner, PwC India.

But September marks the seventh consecutive month of over Rs 1.7 lakh crore monthly collection.

In the first six months of the year, GST collections at Rs 10.87 lakh crore were 9.6 percent higher compared with the first half of FY24.

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Net GST revenues expanded at a slower pace of 3.9 percent to Rs 1.53 lakh crore compared with Rs 1.47 lakh crore in the previous month, as refunds surged during the month.

Domestic refunds were a high 24.3 percent, while IGST refunds were 39.2 percent.

"The significant increase in GST refunds for exports suggests a substantial rise in exports from India. Additionally, the overall increase in GST refunds demonstrates the government's commitment to timely releasing funds to support working capital of exporters and industries facing inverted duty structure," said Saurabh Agarwal, Tax Partner, EY India.