Strong Growth in September GST Collections
The Ministry of Finance announced that the government’s Goods and Services Tax (GST) collections for September saw a robust year-on-year increase of 10.2 percent, reaching Rs 1.63 lakh crore. This growth is encouraging news for the economy.
Month-on-Month Increase
Compared to the previous month, August, the September GST collections also showed a healthy increase of 2.3 percent, totaling Rs 1.63 lakh crore. This indicates a positive trend in revenue generation.
Consistent Performance
Remarkably, September marks the seventh consecutive month with GST collections surpassing the Rs 1.5-lakh-crore mark, showcasing the sustained strength of the GST system.
Steady Growth Over the Years
The GST collections have demonstrated consistent growth over the years. Starting in 2017-18 with an average of under Rs 1 lakh crore per month, collections experienced rapid growth after the pandemic-hit year of 2020-21, averaging Rs 1.51 lakh crore in 2022-23.
Favorable Comparison
The finance ministry highlighted that the average monthly gross GST collection in the first half of 2023-24 has increased by 11 percent compared to the same period in the previous fiscal year. However, it’s worth noting that the average monthly collection for this year is only 9 percent higher than the average for the entirety of 2022-23.
Government’s Expectations
According to the 2023-24 Budget, the government anticipates a 12 percent increase in GST collections for the current financial year, demonstrating its confidence in continued economic recovery.
Breakdown of September Collections
In September, the Central GST amounted to Rs 29,818 crore, State GST reached Rs 37,657 crore, Integrated GST stood at Rs 83,623 crore, and compensation cess amounted to Rs 11,613 crore.
Revenue Distribution
During September, the government distributed Rs 33,736 crore to Central GST and Rs 27,578 crore to State GST from Integrated GST. Consequently, the total revenue for the month, post-settlement, amounted to Rs 63,555 crore for the Central government and Rs 65,235 crore for State GST.
Positive Growth Indicators
The finance ministry also highlighted that revenues from domestic transactions, including the import of services, were 14 percent higher in September compared to the same month last year, underlining the strength of the economy.
In conclusion, the consistent growth in GST collections is a positive sign for India’s economy, and it reflects the government’s efforts to maintain fiscal stability and support economic development.
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