Home / Economy / September GST collection jumps 23% to hit 1.17 tn

NEW DELHI: Central and state governments collected 1.17 trillion in goods and services tax (GST) in September, a 23% jump from the collections made a year ago in what the central government called a sign of “fast" economic recovery.

Tax receipts in September showed a continued improvement since June when receipts had fallen below the 1 trillion-mark due to mobility restrictions enforced to fight the second wave of the coronavirus pandemic, data released by the Union finance ministry showed on Friday.

After settlement for inter-state transactions, the Centre collected 49,390 crore while states collected 50,907 crore.

Among large state economies, Punjab, Haryana, Delhi, Rajasthan, Uttar Pradesh, West Bengal, Odisha, Gujarat, Maharashtra, Karnataka and Tamil Nadu reported double-digit growth in GST collections from a year ago.

“Most of the key manufacturing states reporting a growth of 20% plus compared to last year does indicate that an economic revival is clearly in progress across key states," said M.S. Mani, indirect tax partner at Deloitte.

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NEW DELHI: Central and state governments collected 1.17 trillion in goods and services tax (GST) in September, a 23% jump from the collections made a year ago in what the central government called a sign of “fast" economic recovery.

Tax receipts in September showed a continued improvement since June when receipts had fallen below the 1 trillion-mark due to mobility restrictions enforced to fight the second wave of the coronavirus pandemic, data released by the Union finance ministry showed on Friday.

After settlement for inter-state transactions, the Centre collected 49,390 crore while states collected 50,907 crore.

Among large state economies, Punjab, Haryana, Delhi, Rajasthan, Uttar Pradesh, West Bengal, Odisha, Gujarat, Maharashtra, Karnataka and Tamil Nadu reported double-digit growth in GST collections from a year ago.

“Most of the key manufacturing states reporting a growth of 20% plus compared to last year does indicate that an economic revival is clearly in progress across key states," said M.S. Mani, indirect tax partner at Deloitte.

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Abhishek Jain, tax partner, EY, said that with the festive season coming up, an uptick in GST collections can be expected.

In September, revenue from import of goods was 30% higher while revenue from domestic transactions (including import of services) was 20% higher than last year, the ministry said. In September last year, GST collections had seen a 4% jump.

Meanwhile, the average monthly gross GST receipts for the September quarter rose to 1.15 trillion. It is a 5% improvement over the 1.10 trillion seen in the June quarter.

“This clearly indicates that the economy is recovering at a fast pace. Coupled with economic growth, anti-evasion activities, especially action against fake billers, have also been contributing to the enhanced GST collections. It is expected that the positive trend in the revenues will continue, and the second half of the year will post higher revenues," the finance ministry said.

The central government also released GST compensation of 22,000 crore to states to meet their GST revenue gap.

Earlier, the Centre transferred 75,000 crore to states toward their GST compensation, financed by debt.

Official data on Thursday showed that output from six infrastructure industries accounting for two-fifth of the country’s industrial output had expanded 11.6% annually in August. GST collected in September is for transactions that took place in August.

ABOUT THE AUTHOR

Gireesh Chandra Prasad

Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
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