The gross goods and services tax (GST) revenue collected in September 2021 touched a five-month high at Rs 1.17 lakh crore, remaining above the Rs 1 lakh crore mark for the third month in a row, said the Ministry of Finance in a statement released on Friday, October 1. The GST revenue collected last month is the highest in five months since April, when revenue was at a record high of Rs 1.41 lakh crore.
The record-high collection has raised expectations that the second half of the year will post higher revenues. The tax collections in September 2021 on goods sold and services rendered was 23 per cent higher than Rs 95,480 crore collected in the corresponding month last year, and 27 per cent higher than Rs 91,916 crore collected in September 2019.
Out of the gross GST revenue – Rs 1,17,010 crore, collected in September, the central GST is Rs 20,578 crore and the state GST is Rs 26,767 crore. Also, the integrated GST is Rs 60,911 crore (-including Rs 29,555 crore collected on import of goods) and the cess is Rs 8,754 crore (-including Rs 623 crore collected on import of goods), according to data by the finance ministry.
The government has settled Rs 28,812 crore to CGST and Rs 24,140 crore to SGST from IGST as regular settlement. The total revenue of the Centre and the states after the regular settlements in September stands at Rs 49,390 crore for CGST and Rs 50,907 crore for the SGST.
The average monthly gross GST collection for the second quarter of the current year has been Rs 1.15 lakh crore, which is five per cent higher than the average monthly collection of Rs 1.10 lakh crore in the first quarter of the year.
The government had released GST compensation of Rs. 22,000 crore to the states to meet their GST revenue gap. GST collection in August and July this year stood at Rs 1.12 lakh crore and Rs 1.16 lakh crore, respectively, as per government data.
“The healthy GST collection in September is a reflection of the pick-up in eco activities as the country moves towards normalcy. The critical aspect is that the healthy GST collection has been sustained for last few months.
The improvement in GST collection bodes well for the government’s finances and is much required at this point in time. This will help keep the government’s borrowing under control, which in turn will reduce pressure on government securities (G-sec) yields,” said Ms Rajani Sinha, Chief Economist & National Director – Research, Knight Frank, India.