Gross GST revenue rises 6.5% to Rs 1.73 lakh crore in September

The Goods and Services Tax (GST) revenue in September crossed Rs 1.73 lakh crore, indicating a 6.5 per cent year-on-year growth, according to official data.

Goods and Services Tax (GST) revenue in September last year was Rs 1.63 lakh crore.

In August this year, the mop-up was Rs 1.75 lakh crore, the fifth highest monthly collection since the new indirect tax regime started in July 2017.

Domestic revenue grew 5.9 per cent to about Rs 1.27 lakh crore in September 2024, while revenue from import of goods was up eight per cent to Rs 45,390 crore. After refunding Rs 20,458 crore out of the Rs 1,73,240 crore gross revenue, the net collection in the month increased only by 3.9 per cent on an annualised basis at Rs 1,52,782 crore.

Refunds in September saw a 31 per cent y-o-y jump, compared to the Rs 15,614 crore in September 2023.

Experts expressed their concerns for the relatively lower growth in net collections. According to Vivek Jalan, partner, Tax Connect Advisory Services LLP, with the GDP growth at around 6.5 per cent and inflation around 4.5 per cent, the real GDP Growth is around 11 per cent.

“The year, so far, GST growth is at 9.1 per cent, indicating a tax buoyancy of less than one per cent, which may concern the GST Council,” he said. “Three Group of Ministers are now working simultaneously on real estate, rate rationalisation and insurance. With the tax buoyancy moving southwards, it is expected for the next GST Council meeting to see some far-sighted measures for revenue enhancement.”