Goods and services tax (GST) collections rose 10% to ₹1.63 lakh crore in September from a year earlier , maintaining the recent robust pace of growth, showed data released on Tuesday.
AgenciesGST collection grows 10 per cent YoY at Rs 1.63 lakh crore in September: Finance Ministry
Goods and services tax (GST) collections rose 10% to ₹1.63 lakh crore in September from a year earlier , maintaining the recent robust pace of growth, showed data released on Tuesday.
The collections crossed ₹1.60 lakh crore for the fourth time in the current fiscal on the back of a 14% jump in domestic transactions and indicating a pick-up in consumption.
The gross GST collections for the first half of the current fiscal stood at ₹9.92 lakh crore, up 11% from last year.
“The increase of 14% on domestic transactions ties in well with several other macroeconomic indicators which reflect the growth in domestic production and consumption,” said MS Mani, tax partner, Deloitte.
Monthly collections could rise further in the next quarter as festive demand lifts consumer purchases. “While Rs 1.6 lakh crore plus seems to be the new normal, this could see a further uptick with the festive season around the corner,” said Abhishek Jain, indirect tax head & partner, KPMG.
Several independent agencies have raised India’s growth forecast for FY24 following a stronger-than-expected July-September quarter with most high-frequency indicators suggesting the economy held firm despite high interest rates and elevated inflation.
The Reserve Bank of India expects the economy to grow at 6.5% in FY24.
Many large production and consumption states such as Maharashtra (17%), Karnataka (20%), Tamil Nadu (21%), and Andhra Pradesh (17%) reported a higher than 10% national rise in GST collections.
“Consistent increase in collections in J&K, Manipur, Arunachal Pradesh and Ladakh also indicates the increased consumption in these areas which is also an indicator of increased commercial activities in these parts of the country,” said Saurabh Agarwal, tax partner, EY.
Stricter compliance is also boosting collections.
“With a normal period of limitation for FY17-18 ending on 30th September, some of this increased collection could be linked to businesses having settled issues with payment of taxes for the said period,” Jain added.
Of the total collections, central GST (CGST) was Rs 29,818 crore, state GST (SGST) Rs 37,657 crore and integrated GST (IGST) Rs 83,623 crore, including Rs 41,145 crore collected on import of goods.
India received ‘normal’ rainfall during the four-month-long monsoon season despite El Niño conditions, the India Meteorological Department (IMD) said on Saturday.
Byju's said on Saturday that it would in the second week of October present the audited fiscal-2022 results to its board, advisory council as well as investors Peak XV Partners and Prosus that have recently withdrawn their representatives from the edtech firm’s board.
The latest spike in oil prices may have a marginal impact on India's FY24 wholesale and retail inflation, said economists. However, they said crude sustaining above the $90-level could be a downside risk for core inflation as companies begin passing on high input costs.
Agencies
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