GST collections climbed to Rs 1.89 lakh crore in September, marking a 9.1 percent increase from the year-ago period, government data released on October 1 showed.
The pickup is the fastest in four months, compared with 6.5 percent growth in August. September also extended the run of high inflows, making it the ninth consecutive month that revenues remained above the Rs 1.8 lakh crore mark.
“The increase in gross GST collections to Rs1.89 lac Crores for the month indicates that there has not been any significant slowdown in economic activity in anticipation of the GST rate cuts during the month of August 25," MS Mani, Partner, Deloitte India.
The gain comes despite subdued consumer spending on non-durables, as buyers held back purchases ahead of GST rate cuts. From September 22, the new two-rate structure came into force, consolidating the 28 percent and 12 percent slabs into 18 percent and 5 percent, with more than 90 percent of goods moving into the lower bracket.
India's central bank expects the GST cuts to help push the economy in the coming months and cushion against the impact of US tariffs. The Reserve Bank of India on Friday revised India's growth forecast upward to 6.8 percent compared with 6.5 percent projected earlier. S&P Global Ratings earlier this month maintained that the economy will continue to grow at 6.5 percent with domestic demand partially offsetting the impact of US tariffs.
Even so, collections remain below the record ₹2.4 lakh crore mobilised in April. Collections are expected to stay subdued as the rate cuts filter through, before recovering owing to stronger compliance.
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