NEW DELHI: After months of languishing, GST collections have finally begun showing signs of recovery. According to data released by the Centre, collections improved marginally in September to come in at Rs 95,480 crore, the highest since March.
However, GST income still remains below the psychologically important mark of Rs 1 lakh crore per month.
A perusal of the data released on Thursday shows that although on a year-on-year basis GST growth was 4 per cent, the collections were 10.4 per cent higher compared to the preceding month.
Experts claim that the upcoming festive season will also help in keeping collections during subsequent months to remain at a high level.
Analysts expect the increase in demand and business activity during the festive season to spur both growth and government revenues.
Of the total collection in the month of September, Central GST was Rs 17,741 crore, State GST was Rs 23,131 crore, and IGST was Rs 47,484 crore, including Rs 22,442 crore collected on the import of goods and Rs 7,124 crore collected as compensation cess.
“The government has settled Rs 21,260 crore to CGST and Rs 16,997 crore to SGST from IGST as regular settlement,” the Centre said in a statement, adding, “The total revenue earned by Central government and the state governments after regular settlement in the month of September, 2020 is Rs 39,001 crore for CGST and Rs 40,128 crore for the SGST”.
A state-wise break-up of GT data from the month shows that Maharashtra was the top GST contributor, but contributions remained almost stagnant at Rs 13,546 crore compared to same period last year. However, states such as Gujarat recorded a 6 per cent growth at Rs 6,090 crore, Tamil Nadu saw collections increase by 15 per cent at Rs 6,454 crore, while Karnataka saw a contraction of 5 per cent at Rs 6,050 crore during the period under review.
MS Mani, senior director at consultancy firm Deloitte India pointed out that the positive growth is a good sign for the economy.
“A modest increase of 4 per cent in the GST collections compared to the previous year indicates that the economic recovery process is underway, with some key large states also reporting increased collections,” he said.
Who gets what?
Rs 17,000 crore was the Central GST collection in September
Rs 23,000 crore was the State GST collection in September
IGST collections for the months stood at Rs 47,484 crore