September’s Goods and Services Tax (GST) collection reached Rs 1.73 lakh crore, marking the lowest figure in the past 40 months and reflecting a 1% decline compared to August. However, the Finance Ministry reported a notable 5.9% increase in net local revenue for September. The Central Board of Indirect Taxes (CBIC) highlighted that GST refunds also rose by 4.5%, continuing a positive trend for the second consecutive month, with refunds increasing to 24.3% in September from 38% in August.
Export-related consolidated GST saw impressive growth, surging by 39.2%. Despite these positive indicators, seven states reported negative revenue growth. Notably, Manipur faced a staggering 33% decline in GST collections, while Gujarat also reported lower figures. States including Telangana, Rajasthan, Uttar Pradesh, Tamil Nadu, and West Bengal collected GST below the national average, with reductions ranging from 1% to 5%.
Conversely, Haryana, anticipating upcoming assembly elections, enjoyed a substantial 24% increase in GST revenue, followed closely by Delhi, which experienced a 20% growth in collections.
Looking ahead, experts predict a rise in GST collections in the coming months, driven by the festive season across India. This potential upturn could provide much-needed relief and bolster revenue for various states as they navigate the current economic landscape.
Stay tuned for more insights on GST trends and their implications for state revenues in the coming months.