GST Collections In October Surge To The Highest In FY24 At Rs 1.72 Lakh Crore
Driven by festive season consumption, goods and services tax for September spiked to Rs 1.7 lakh crore, the highest gross monthly revenue in the ongoing fiscal.
The gross GST for September, collected in October, rose 13% annually to Rs 1,72,003 crore, according to data released by the Ministry of Finance on Wednesday.
The significantly higher collection could be linked to settlement of disputes for FY 17-18 as the normal period of limitation was ending on Sept. 30, according to Abhishek Jain, KPMG's indirect tax head. "A mid-year collection of such an increased number is definitely worth a cheer and the ongoing festivities driven consumption could help this continue.”
The average monthly gross GST collection in FY24 for the first six months is Rs 1.63 lakh crore, about 11.3% higher that a year earlier.
The total gross collection in the first half is around Rs 9.77 lakh crore, of which the monthly average for July-September stood at Rs 1.65 lakh crore.
The highest-ever collection was recorded in April at Rs 1.87 lakh crore. Since these figures pertain to transactions in March 2023, September's collections remain the highest monthly number for FY24.
In September, revenue from domestic transactions (including imports of services) was 13% higher than a year earlier.
Break-Up Of GST Collections
Gross GST revenue: Rs 1,72,003 crore.
Central GST: Rs 30,062 crore.
State GST: Rs 38,171 crore.
Integrated GST: Rs 91,315 crore, including Rs 42,127 crore collected on import of goods.
Cess: Rs 12,456 crore, including Rs 1,294 crore collected on the import of goods.
State Collection Trends
Maharashtra, followed by Karnataka, retained the top spots owing to the size of their consumption base and prevalence of industries. Maharashtra recorded Rs 84,712 crore in collections after SGST settlement, growing at 14% annually.
Karnataka collected Rs 42,657 crore after the settlement of SGST, growing 12% annually.
Tamil Nadu recorded the third-highest collection, indicating strong consumption momentum, beating Gujarat for the second straight month.
Tamil Nadu recorded Rs 37,476 crore (9% on year increase) in September collections after settlements, while Gujarat reported Rs 36,322 crore (10% annual growth).
The growth in GST collections over the past few months can be attributed to efforts of tax authorities in deploying tools to compare data sets and determine short payment and evasion, according to MS Mani, tax partner at Deloitte India. Growing emphasis on audits led by specific information available on various databases, not only on the GST portal, has led to a significant increase in compliance across sectors and states, he said.
"This is also reflected in the upsurge in the GST collections across key manufacturing and consuming states," he said.
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