Growth in India’s Gross Goods and Services Tax (GST) collections slumped to a 40-month low of 6.5% in September, with revenues at ₹1,73,240 crore, about 1% lower than the tally in August.
Net GST receipts, after adjusting for refunds made to taxpayers, were 3.9% higher than a year ago, marking the slowest growth in this financial year. However, net collections were 1.5% higher than August’s receipts, at ₹1,52,782 crore. In the preceding month, net GST receipts had grown 6.5% while gross collections were up 10%.
Gross domestic revenues were up 5.9% in September, with the uptick moderating 4.5% higher after adjusting for refunds, provisional numbers from the Central Board of Indirect Taxes and Customs (CBIC) showed. Growth in gross revenues from imports outpaced domestic revenues for the third straight month, rising 8% in September.
GST refunds continued to grow at a healthy pace for the second successive month, with domestic refunds to taxpayers rising 24.3% in September, while export related refunds of Integrated GST (IGST) revenues were up 39.2%. Overall refunds were 31% higher, compared with a 38% uptick in August and an over 19% contraction in July.
As many as seven States recorded negative revenue growth, led by a 33% contraction in Manipur, while revenues were flat in Gujarat. Ten States underperformed the national level 6% uptick in domestic revenues, including Telangana (1%), Rajasthan (2%), Uttar Pradesh (3%), and Tamil Nadu, Maharashtra and West Bengal (5% each). Poll-bound Haryana recorded the sharpest rise in revenues of 24%, followed by Delhi where receipts grew 20%.
It must be noted that September’s GST revenues are linked to transactions undertaken in the month of August. Tax experts reckoned that revenue growth will pick up from this month with the onset of the festive season.
Published - October 01, 2024 06:31 pm IST
