03-Oct-2023
2 mins read
The Finance Ministry announced that the GST revenues for September 2023, compared to those in the same month last year, have increased by 10%. The Finance Ministry stated, “This marks the fourth instance in FY 2023-24 where the gross GST collection has exceeded the Rs.1.60 lakh crore threshold”.
Additionally, revenues from domestic transactions (including the import of services), compared to the previous year’s figures for the same month, have seen a 14% rise.
The states received Rs.65,235 crore as taxes on intra-state sales and Rs.11,613 crore as GST Cess, whereas the central government received Rs.63,555 crore as taxes on inter-state sales in September 2023.
The gross GST proceeds during the first half of 2023-24 registered an 11% surge, compared with the same period of 2022-23, amounting to Rs.9.92 lakh crore. The monthly gross collection in 2023-24, compared to last year’s average of Rs.1.49 lakh crore, scored a 10% rise. The Union finance ministry affirmed that these GST revenue figures align with official estimates.
| Financial Year | Average monthly gross collection |
| 2023-24 | Rs.1.63 lakh crore |
| 2022-23 | Rs.1.49 lakh crore |
Experts attribute the growth in GST collections to improved administrative efficiency and a structural shift, including more micro enterprises registering for GST, broadening the tax base, and standardising the economy. However, concerns exist due to the impact of high inflation on consumption, particularly in rural areas, where consumption has remained muted.
Abheek Barua, HDFC Bank’s chief economist, indicated the risk of food price inflation affecting consumption. He believes infrastructure projects by central and state governments support incomes and consumption.
Household consumption is a key growth driver. It is expected that the consumption may stead up during the upcoming festive season. However, since it stayed relatively balanced during the first quarter of the present financial year 2023-24, therefore, it is necessary to observe the impact of consumption on year-on-year growth.
Additionally, as of September 16, the central government has effectively gathered Rs. 8.65 lakh crore in direct taxes, marking a substantial 23.5% surge in tax revenues and exceeding more than 50% of the annual direct tax goal. The Ministry of Finance continues to uphold its forecast for a 6.5% real GDP growth rate in the current fiscal year, which is 2023-24.