Revenue of over ₹1.17 lakh crore for the month of September 2021, 23% higher than GST revenue in September 2020
India’s Gross Goods and Services Tax (GST) Revenue crossed ₹1.17 lakh crore in September, hitting a five-month high, and the finance ministry expects the positive trend to pick up pace in the second half of the year.
September revenue was 23% higher than a year ago and 27.3% higher than collections in the pre-pandemic month of September 2019. “With economic growth, anti-theft activities, especially action against fake billers, are also contributing to the increase in GST. collection,” the finance ministry said.
compliance level
The ministry did not release any data on the compliance level or the number of GSTR 3B returns filed by taxpayers for the eighth consecutive month. State-wise revenue trends were disclosed for the third consecutive month after being dropped in January, April, May and June.
Revenue from imports of goods was up 30%, while indirect taxes collected on domestic transactions, including imports of services, were up 20% in September compared to the same month in 2020.
MS Mani, Senior Director, Deloitte India said that the significant increase in GST collections from both import and domestic transactions and significant increase in collections in key states indicate a nationwide pick-up in business activities. “Most of the major manufacturing states are reporting growth of more than 20%,” he pointed out.
Among the major states, GST revenue increased by 29% in Karnataka, 28% in Gujarat, 22% in Maharashtra and 21% in Tamil Nadu and Andhra Pradesh. Telangana recorded a 25% increase in revenue, while Odisha witnessed a sharp growth of 40%.
“The average monthly gross GST collection for the second quarter of the current year stood at ₹1.15 lakh crore, which is 5% higher than the average monthly collection of ₹1.10 lakh crore in the first quarter of the year. This clearly indicates that the economy is recovering at a fast pace,” the finance ministry said.
“While the pace of growth slowed down relative to the 30% growth in August 2021, this is due to general grounds,” said Aditi Nair, chief economist at ICRA. “The release of GST compensation cess of Rs 22,000 crore will benefit the cash flow position of the states, allowing accelerated spending in the third quarter of 2021-22, an expected boost in central government spending following the easing of cash management guidelines. will give.” he said.
Rajat Bose, Partner, Shardul Amarchand Mangaldas & Co said, “With festivals approaching, GST collections are also likely to witness an increase in the near future.
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