GST collections for September jump by 9% to ₹1.89L crore
What's the story
India's Goods and Services Tax (GST) collections for September stood at ₹1.89 lakh crore, a 9.1% year-on-year increase. The data, released on Wednesday, shows a strong growth trajectory despite predictions of a consumption slowdown due to deferred big-ticket purchases ahead of GST rate cuts. The figures reflect August transactions and indicate no major economic activity slowdown in anticipation of the new rates during that month.
Growth factors
Import collections rose by 15.6%
The growth in GST collections was also supported by a 15.6% increase in import collections. This surge is primarily attributed to retailers and e-commerce platforms stocking up for the high festive season demand. Experts expect the full impact of GST rate rationalization may moderate collection growth in October and November but remain positive, driven by festive demand.
Resilience
GST collections continue to grow
Abhishek Jain, indirect tax head and partner at KPMG, highlighted that the growth in GST collections has continued even after the removal of GST revenue from online money gaming businesses. The new online gaming law came into effect only on October 1 but companies had already ceased operations after Parliament passed the bill in August