GST mop up tops Rs 1 lakh crore for third straight month; at Rs 1.17 lakh crore in September

The revenues for the month of September 2021 are 23 per cent higher than the GST revenues in September 2020

In an indication that the economy may be turning a corner after the Covid pandemic hiatus and demand conditions improving ahead of the festive season, India’s GST collection in September touched a five-month high at Rs 1.17 lakh crore, remaining above the Rs 1 lakh crore mark for the third consecutive month.

The gross GST revenue collect was Rs 1,17,010 crore of which CGST was Rs 20,578 crore, SGST Rs 26,767 crore, IGST Rs 60,911 crore and Cess was Rs 8,754 crore.

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The revenues were 23% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 30% higher and the revenues from domestic transaction (including import of services) are 20% higher than the revenues from these sources during the same month last year, the data showed.

”The buoyancy in GST collection is a good indicator of economic recovery. 23% growth over September 2020 is impressive. As the festive season starts, GST collections should also see a rise in the near future,” Rajat Bose, Partner, Shardul Amarchand Mangaldas & Co.

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The average monthly gross GST collection for the second quarter of the current year has been Rs 1.15 lakh crore, which is 5% higher than the average monthly collection of Rs 1.10 lakh crore in the first quarter of the year.

"This clearly indicates that the economy is recovering at a fast pace. Coupled with economic growth, anti-evasion activities, especially action against fake billers have also been contributing to the enhanced GST collections. It is expected that the positive trend in the revenues will continue and the second half of the year will post higher revenues," the finance ministry said.

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The Centre had also released GST compensation of Rs 22,000 crore to States to meet their GST revenue gap.

Aditi Nayar, Chief Economist, ICRA said, "The release of GST compensation cess of Rs 22,000 crore will benefit the states' cash flow situation, allowing accelerated spending in the October-December quarter, complementing the expected boost to central government spending after the easing of cash management guidelines."

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