New Delhi: Goods and services tax (GST) revenue growth rate declined to 6.5 per cent in September at Rs 1.73 lakh crore as the rise in collections from domestic transactions as well as imports slowed.
However, with the festival season ahead, collections are expected to be better in the coming months, tax experts said. According to government data released on Tuesday, GST revenues in September last year was Rs 1.63 lakh crore, while the In August 2024, the mop-up was Rs 1.75 lakh crore.
Gross domestic revenue grew 5.9 per cent to about Rs 1.27 lakh crore. Revenue from import of goods was up 8 per cent to Rs 45,390 crore. Refunds worth Rs 20,458 crore were issued during the month, an increase of 31 per cent over the year-ago period.
After adjusting refunds, the net GST revenue in September stood at Rs 1.53 lakh crore, 3.9 per cent higher than the year-ago period. GST collections during the April-September period of the current fiscal year grew 9.5 per cent to over Rs 10.87 lakh crore.
PwC India Partner Pratik Jain said while the year-to-date GST revenues (September 2024) grew over 9 per cent, 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 exercise. However, with festive seasons coming, the collection for next couple of months might be better,” Jain said.
Deloitte India Partner MS Mani said the GST revenues for the coming months will be eagerly watched as they are also a proxy for the economic growth and can be correlated with the GDP numbers.
However, the significant increase in GST refunds, especially IGST Export refunds, depicts the efforts of tax authorities in expediting refunds and the policymakers in simplifying the refund process.
“The tepid single-digit growth in GST revenues in many of the large states should, hopefully, be corrected in the coming months,” Mani added.
EY Tax Partner Saurabh Agarwal said the significant increase in GST refunds for exports suggests a substantial rise in exports from India. Adding further, the overall increase in GST refunds demonstrates the government’s commitment to timely release funds to support the working capital of exporters and industries facing an inverted duty structure.