• Source:PTI
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GST Collection:  The Goods and Services Tax (GST) revenue growth slowed to 6.5 per cent to Rs 1.73 lakh crore in September as collection growth from domestic transactions as well as imports slowed down. However, with the festive season coming up, collections are likely to improve in the following months, according to tax experts.

GST revenue stood at Rs 1.63 lakh crore in September last year, whereas the mop-up was Rs 1.75 lakh crore in August 2024, according to official data released on Tuesday. Total domestic revenue increased 5.9 per cent to approximately Rs 1.27 lakh crore. Revenue from imports of goods increased by 8 per cent to Rs 45,390 crore.

This month, refunds worth Rs 20,458 crore were issued, up 31 per cent from the previous year. Net GST revenue stood at Rs 1.53 lakh crore in September after adjusting for refunds, up 3.9 per cent from the previous year.GST collection rose 9.5 per cent to more than Rs 10.87 lakh crore during the April-September period of the current fiscal.

Year-to-date GST revenue (in September 2024) has increased by more than 9 per cent, although the monthly growth is perhaps lower than anticipated, said Pratik Jain, partner, of PwC India.

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The GST Council may have to look into this more closely, especially given the rate rationalization exercise. However, with the festive season approaching, collections may improve for the next two months, Jain said.

GST revenue will be observed with great interest in the coming months as it is also a proxy for economic growth and can be correlated with GDP figures, said M S Mani, partner at Deloitte India.

However, the significant increase in GST refunds, particularly IGST export refunds, demonstrates the efforts of tax authorities and policymakers in simplifying the refund process in expediting refunds.

EY Tax Partner Sourav Aggarwal said the significant increase in GST refunds for exports indicates a significant increase in exports from India. In addition, the overall increase in GST refunds demonstrates the government’s commitment to the timely release of funds to support the working capital of exporters and industries facing an inverted tariff structure.

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(With PTI's Input)