September 2021: GST mop-up increases

GST collections topped Rs 1.17 lakh crore in September, which was 4.5% more than the previous month and 22.5% higher than a year ago. While economic indicators have been showing a steady increase, GST collections have remained over Rs 1 lakh crore, barring a surprise fall in collections in August over July. But the latest number, based on transactions in August, indicates that the previous month’s numbers were a blip.

The latest data indicates a slowdown in collections from domestic transactions with Central and state GST mop-up increasing under 1% in the month of September, compared to the previous month.

It was largely IGST, which saw a 10% rise compared to August, that drove up overall collections, while cess on imported goods saw a decline. The government was, however, hopeful of an improvement in the coming months.

Even tax experts said the festival season will provide a boost.

No comments: