GST Revenue Growth Declines to 6.5% in September, Festival Season Expected to Boost Collections

GST revenue growth rate fell to 6.5% in September, with collections at Rs 1.73 lakh crore. Experts anticipate better collections in upcoming months due to the festival season. Government data shows a slight year-to-year increase in net GST revenue after refunds. Year-to-date revenues grew by 9.5% to Rs 10.87 lakh crore.

GST revenue growth rate declined to 6.5% in September, registering collections of Rs 1.73 lakh crore, as both domestic and import transactions experienced slower growth.

Tax experts predict improved collections in the upcoming festival season. In comparison, the previous year recorded Rs 1.63 lakh crore in revenue for the same month.

Government data indicates a 5.9% rise in gross domestic revenue to about Rs 1.27 lakh crore, while import revenue saw an 8% increase to Rs 45,390 crore. Refunds worth Rs 20,458 crore were issued, marking a 31% year-on-year increase.

After accounting for refunds, net GST revenue stood at Rs 1.53 lakh crore, which is 3.9% higher than the previous year.

From April to September this fiscal year, GST collections grew by 9.5% to over Rs 10.87 lakh crore.

Pratik Jain of PwC India noted that while year-to-date growth exceeded 9%, monthly growth figures warrant closer inspection by the GST Council. He expects better collection figures in the upcoming months due to festival-related spending.

Deloitte India's MS Mani emphasized that upcoming GST revenues will be closely watched as indicators of economic growth, and noted significant increases in GST refunds, especially for IGST exports, as a result of streamlined refund processes.

EY Tax Partner Saurabh Agarwal highlighted that the rise in export refunds points to a substantial increase in exports from India and demonstrates the government's commitment to supporting exporters and industries facing inverted duty structures.

(With inputs from agencies.)