Growth in India's Goods and Services Tax (GST) collections dropped to a 40-month low of 6.5 per cent in September, with total revenues reaching Rs 1,73,240 crore, about 1 per cent lower than August's figure.
Net GST receipts, after adjusting for taxpayer refunds, were 3.9 per cent higher than the same time last year, the slowest rate of growth this fiscal year. However, they were 1.5 per cent higher than August’s net collections, amounting to Rs 1,52,782 crore. The previous month saw net receipts grow by 6.5 per cent, with gross collections increasing by 10 per cent.
Domestic revenues grew 5.9 per cent in September, with growth slowing to 4.5 per cent after accounting for refunds, according to provisional data from the Central Board of Indirect Taxes and Customs (CBIC). Meanwhile, gross revenues from imports outpaced domestic revenue growth for the third consecutive month, rising by 8 per cent in September.
GST refunds continued to rise steadily for the second month in a row, with domestic refunds increasing by 24.3 per cent in September and export-related Integrated GST (IGST) refunds growing by 39.2 per cent. Overall refunds increased by 31 per cent, compared to a 38 per cent rise in August and a 19 per cent decline in July.
Seven states recorded negative revenue growth, led by Manipur’s 33 per cent contraction, while Gujarat's revenues remained flat. Ten states, including Telangana (1 per cent), Rajasthan (2 per cent), Uttar Pradesh (3 per cent), Tamil Nadu, Maharashtra, and West Bengal (5 per cent each), saw domestic revenue growth below the national average of 6 per cent. Haryana, heading into elections, had the highest revenue growth at 24 per cent, followed by Delhi at 20 per cent.
It’s important to note that September's GST collections are based on transactions conducted in August. Tax experts anticipate revenue growth will increase in the coming months with the festive season approaching.
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