NEW DELHI: The growth in monthly GST collections has further weakened as gross collection in September grew by only 6.5% as against 10% rise in the previous month.
The gross collections during the month was Rs 1.73 lakh crore compared to Rs 1.62 lakh crore in the same month the previous year. In July 2024, revenue had grwn by 10.3%. Year-to-date gross revenue have risen by 9.5% to Rs 10.87 lakh crore.
Fall in GST collection ahead of the meeting of Group of Ministers (GoM) on rate rationalisation on October 19-20 may influence the decisions of the GoM. As per Vivek Jalan, partner, Tax Connect Advisory Services LLP, with nominal GDP growth of 11% so far in FY25, GST growth at 9.1%, a tax buoyancy of less than 1 may concern the GST Council.
“Three GoMs are working simultaneously on real estate, rate rationalisation and insurance. With tax buoyancy moving southwards, it is expected that the next GST Council meet should see some far sighted measures on revenue enhancement,” added Jalan.
Net revenue growth nearly halved to 3.9% in September against 6.5% in August as refunds grew 31% in September. IGST refunds, accounted for 70% of refunds, grew 40% during the month.
“Major rise in GST refunds, especially IGST export refunds, depicts efforts of the tax authorities in expediting refunds and the policy makers in simplifying refund process,” says MS Mani, Partner, Deloitte India. Most large states saw low single-digit growth with some even showing fall. Maharashtra and Tamil Nadu showed 5% growth in gross collection, Gujarat showed nil growth, Uttar Pradesh 3%, Rajasthan 2% and Karnataka saw 8% growth.