GST revenue growth rate slowed to 6.5% in September, with collections totalling Rs 1.73 lakh crore, according to government data released on Tuesday. This marks a slight decline compared to August 2024, when GST revenue stood at Rs 1.75 lakh crore. The slower growth is attributed to a reduction in collections from both domestic transactions and imports.
In comparison, GST revenues for September 2023 were Rs 1.63 lakh crore, reflecting a year-on-year growth of Rs 10,000 crore. Gross domestic revenue grew by 5.9%, reaching approximately Rs 1.27 lakh crore, while revenue from the import of goods increased by 8% to Rs 45,390 crore.
During September 2024, refunds worth Rs 20,458 crore were issued - an increase of 31% compared to the same period last year. After adjusting for refunds, the net GST revenue for the month stood at Rs 1.53 lakh crore, reflecting a 3.9% growth from September 2023.
Festive Season to Drive Higher Collections
Tax experts remain optimistic about the months ahead, anticipating a surge in GST collections with the onset of the festive season.
Despite the slower growth in GST collections, experts believe that the upcoming festive season will provide a much-needed boost to revenue figures, with collections likely to rebound in the following months.
GST Revenue Growth for April-September 2024
For the April-September period of FY2024-25, GST collections grew by 9.5%, exceeding Rs 10.87 lakh crore. However, the lower-than-expected monthly growth rate for September raises questions about the long-term sustainability of current trends.
As the festive season approaches, all eyes will be on the GST collections for October and November, which will likely offer clearer insights into India’s economic recovery and overall growth trajectory.
Please click here to view the gross and net GST revenue collections for the month of September, 2024.
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