GST collections in September reaches ₹1.4 lakh-crore, 3rd highest ever

Revenue from the Goods and Services Tax (GST) in September rose 26%year-on-year to ₹1.48 lakh crore.

The third highest ever and crossing ₹1.40 lakh crore for the seventh consecutive month, on robust business activities despite the global economic slowdown.

The gross GST revenue collection in September at ₹1,47,686 crore, reflecting business transactions in August, was ₹2,314 crore short of ₹1.50 lakh crore, but government officials and industry experts expect collections to cross that mark next month on higher sales during the festival season.

GST monthly collections stabilising above ₹1.4 lakh crore for seven months in a row provides more headroom in the fiscal front, said MS Mani, partner at Deloitte India, a consultancy.

“The collections in the next three months are expected to be even more robust due to the higher consumption expected during the festive season and the extension of the mandatory e-invoice protocol to taxpayers having turnover above ₹10 crore from October 1,” he added.

“It is noteworthy that these collections reflect supplies made in August. With the festive season coming up, the GST collections can further be expected to go up in the coming months,” said Abhishek Jain, partner, indirect tax at KPMG in India.

“This is the eighth month and for seventh months in a row now that the monthly GST revenues have been more than the ₹1.4 lakh crore mark. The growth in GST revenue till September 2022 over the same period last year is 26%, continuing to display very high buoyancy,” the finance ministry said in a statement on Saturday.

The monthly GST collection crossed ₹1.4 lakh crore for the first time in January ( ₹1,40,986 crore) and, barring February ( ₹1,33,026 crore), the collections crossed the mark repeatedly since March ( ₹1,42,095 crore). The cumulative GST collections in April-September was ₹8,93,334 crore, with an average monthly collection of ₹1,48,889 crore, according to official data.

The streak of robust GST collections started from the first month of the current financial year, when April revenues surged an all-time high at ₹1,67,540 crore. Later, July saw the second highest collections at ₹1,48,995 crore.

Out of the total gross GST revenue collected in September, the central GST (CGST) component is ₹25,271 crore, state GST (SGST) is ₹31,813 crore, integrated GST (IGST) is ₹80,464 crore (including ₹41,215 crore collected on import of goods) and cess is ₹10,137 crore (including ₹856 crore collected on import of goods), the ministry said in the statement.

High cess collections reflect rising demand of luxury goods such as automobiles, experts said. “The stability in cess collection after few months is an indicator that demand for goods such as automobile, cigarettes and aerated beverages has remained constant and has not shown further decline,” said Saurabh Agarwal, tax partner at consultancy firm EY.

“This month witnessed the second highest single day collection of ₹49,453 crore on 20th September with second highest number of 8.77 lakh challans filed, next only to ₹57,846 crore collected on 20th July 2022 through 9.58 lakh challans, which pertained to end of the year returns,” the finance ministry said, adding that the development reflects the robustness of the GST portal.

September also saw another milestone when more than 1.1 crore e-way bills and e-invoices (72.94 lakh e-invoices and 37.74 lakh e-way bills) were generated without any glitch on the portal on September 30, it said.

The state-wise GST revenue data show significant increase in “consumption pattern coupled with increase in taxable base” in percentage terms compared to same month previous year from states and union territories such as Andaman & Nicobar Islands, Lakshadweep, Meghalaya, and Nagaland, Agarwal said.

“The generation of 1.1 crores e-way bill and e-invoicing in a single day showcases a stability in the IT infrastructure,” he said. “However, it’s important for the big business houses to move to private Invoice Registration Portals appointed by the Government in order to share the load of data which is likely to be increased due to increase in number of assesses liable to generate e-invoices from 1 October 2022.”