It discusses the growth in GST collections, the slowdown in growth, and areas of concern that policy
India's gross revenues from the Goods and Services Tax (GST) have reached over ₹9.92 lakh crore, showing an 11.1% increase compared to the previous year.
The average monthly revenues in 2023-24 are ₹1,65,418 crore, with four out of six months crossing ₹1.6 lakh crore.
September's GST collections were slightly below the average at ₹1.63 lakh crore, but still 2.3% higher than August's collections.
With the festive season approaching, collections over ₹1.6 lakh crore are expected to continue in the current quarter.
The government is confident about GST revenues for the fiscal year, with room for moderation in inflows during the January-March 2024 quarter.
Policymakers and the GST Council need to closely examine areas of concern highlighted by these numbers.
Growth of GST inflows dropped to 10.2% in September, the slowest uptick since July 2021.
Average growth between July and September dipped to 10.6% in the second quarter from 11.5% in the first.
Growth from domestic transactions and services imports has slowed to 14% over the past two months, from 18% in June.
Revenues in September include pending dues from businesses since the start of the GST regime in 2017-18.
E-invoicing became mandatory for all firms with a turnover of over ₹5 crore since August 1, leading to another compliance push.
Record 9.34 crore e-way bills generated in August did not translate into the highest-ever revenues, suggesting that transaction sizes have shrunk.
Revenues from goods imports have shrunk four times this year, despite imports hitting a nine-month high in August.
Authorities must investigate for revenue leakages from imports.