India’s GST Revenue Growth Slows to 10.2% in September

October Gross GST Collections Reach ₹1.72 Lakh Crore

In September 2023, India’s Gross Goods and Services Tax (GST) revenues witnessed a significant slowdown, growing at the slowest pace in 27 months. The growth rate dropped to 10.2% from the previous months’ approximately 10.8%. This decline, although notable, was coupled with some intriguing state-wise variations in GST collections.

Key Points:

1. National GST Revenues:

Despite the slowdown, GST collections improved by 2.3% over August, reaching ₹1,62,712 crore.
Revenues from domestic transactions, including services imports, were 14% higher compared to September 2022.
This marked the fourth instance in the fiscal year 2023-24 when GST revenue crossed the ₹1.60 lakh crore mark.

2. State-wise Variations:

Revenues in strife-torn Manipur recorded the highest growth among states, surging by 47%.
Other states with notable growth included Telangana (33%), Jammu and Kashmir (32%), and Arunachal Pradesh (27%).
However, Bihar was the only state to report a contraction, with GST collections down by 5%.
Union Territories of Lakshadweep and Andaman and Nicobar Islands experienced significant declines of 45% and 30%, respectively. Conversely, Ladakh saw an 81% increase in revenues.

3. GST Components:

Components of GST included Central GST (CGST) collections of ₹29,818 crore, State GST (SGST) of ₹37,657 crore, and Integrated GST (IGST) of ₹83,623 crore.
GST compensation cess inflows were ₹11,613 crore, which included ₹881 crore collected on the import of goods.
Pending dues from businesses, especially since the initiation of GST in 2017-18, might have contributed to the rise in September’s revenues.

4. Historical Context:

The last time GST revenues grew at a slower pace was in June 2021, during the second wave of the COVID-19 pandemic, when collections rose by a mere 2%.

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Piyush Shukla