According to the Finance Ministry, Goods and Services Tax (GST) collection in September surpassed ₹95,000 crore. This records the first time where the monthly collections illustrated a year on year growth for India in the current fiscal, indicating a recovery in economic activity.
21 States and Union Territories saw an increase in GST collections during September. Jammu Kashmir recorded the highest growth of 30 per cent.
“A modest increase of 4% in the GST collections compared to the previous year indicates that the economic recovery process is underway, with some key large states also reporting increased collections. If the present trend of GST collections continues, we should be hopeful of significant increase in the coming months based on the unlock steps taken in various states and the festival season ahead,” said M S Mani, Deloitte India’s senior director.
Exports also recorded the first increase since February as initial estimates by the government showed exports rose 5.3% reaching $27.4 billion. Indian shipment values rose 2.9%, indicating an increase in demand from Europe and the US markets.
The Finance Ministry statement stated that the gross GST revenue collected in September 2020 was ₹95,480 crore comprising CGST of ₹17,741 crore, SGST of ₹23,131 crore, IGST of ₹47,484 crore (including ₹22,442 crore collected on import of goods) and cess of ₹7,124 crore (including ₹788 crore collected on import of goods).
After September 2020 regular settlement, the Centre and State governments earned ₹39,001 crore for CGST (tax charged on intrastate supply of goods and services) and ₹40,128 crore for the SGST (a tax component applied to the same intrastate supplies by the state government) in total revenue.