September GST collections cross ₹2 trillion mark

India's gross goods and services tax (GST) collections rose 14.7% in September to ₹2.04 trillion from ₹1.77 trillion a year earlier, according to provisional data released by the finance ministry. The headline growth was driven largely by a sharper rise in tax collected on imports, which increased nearly 26%, accounting for more than half of the overall increase. September marked the third month this fiscal year in which GST collections crossed the ₹2 trillion mark, though collections were below the ₹2.11 trillion collected in July.

Gross domestic GST revenue rose 10.1% to ₹1.38 trillion in September from ₹1.25 trillion a year earlier. GST collected on imports jumped 25.9% to ₹65,525 crore from ₹52,031 crore. According to a Crisil Ratings analysis, IGST collections from imports grew nearly 30% in the five months through August, aided by imports of electronics, machinery, gold, fertilisers and other key goods. Elevated commodity prices, rupee depreciation and stable import volumes supported import-linked IGST collections. In September, domestic GST revenue increased by ₹12,662 crore over the year, while GST revenue from imports rose by ₹13,494 crore.

The September numbers come ahead of the 57th GST Council meeting scheduled for 7 October in New Delhi. The council is likely to discuss a review of GST on merchant discount rate on UPI transactions, with a new MDR levy slated to take effect from 15 October. The meeting could also provide an opportunity to review the implementation of rate rationalization and address outstanding issues under the indirect tax regime.