The collections crossed ₹1.60 lakh crore for the fourth time in the current fiscal on the back of a 14% jump in domestic transactions and indicating a pick-up in consumption.
The gross GST collections for the first half of the current fiscal stood at ₹9.92 lakh crore, up 11% from last year.
“The increase of 14% on domestic transactions ties in well with several other macroeconomic indicators which reflect the growth in domestic production and consumption,” said MS Mani, tax partner, Deloitte.
Monthly collections could rise further in the next quarter as festive demand lifts consumer purchases. “While Rs 1.6 lakh crore plus seems to be the new normal, this could see a further uptick with the festive season around the corner,” said Abhishek Jain, indirect tax head & partner, KPMG.
Several independent agencies have raised India’s growth forecast for FY24 following a stronger-than-expected July-September quarter with most high-frequency indicators suggesting the economy held firm despite high interest rates and elevated inflation.
The Reserve Bank of India expects the economy to grow at 6.5% in FY24.
Many large production and consumption states such as Maharashtra (17%), Karnataka (20%), Tamil Nadu (21%), and Andhra Pradesh (17%) reported a higher than 10% national rise in GST collections.
“Consistent increase in collections in J&K, Manipur, Arunachal Pradesh and Ladakh also indicates the increased consumption in these areas which is also an indicator of increased commercial activities in these parts of the country,” said Saurabh Agarwal, tax partner, EY.
Stricter compliance is also boosting collections.
“With a normal period of limitation for FY17-18 ending on 30th September, some of this increased collection could be linked to businesses having settled issues with payment of taxes for the said period,” Jain added.
Of the total collections, central GST (CGST) was Rs 29,818 crore, state GST (SGST) Rs 37,657 crore and integrated GST (IGST) Rs 83,623 crore, including Rs 41,145 crore collected on import of goods.
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