India’s Goods and Services Tax (GST) collections for September have surged to ₹1.73 lakh crore, reflecting a 6.5% increase compared to the same month last year, according to official data. In September 2022, the government had collected ₹1.63 lakh crore in GST.
After accounting for refunds, the net GST revenue for the month rose about 4% year-on-year to ₹1.53 lakh crore. Domestic revenue showed a robust 5.9% increase, totaling approximately ₹1.27 lakh crore, while revenue from imported goods grew by 8%, reaching ₹45,390 crore.
During this period, refunds issued amounted to ₹20,458 crore, marking a significant 31% rise compared to last year. This brought the net GST revenue for September to ₹1.53 lakh crore, which is 3.9% higher than the previous year.
In August, GST collections had already increased by 10% from the prior year, totaling ₹1,74,962 crore, with a gross GST revenue of ₹1,59,069 crore. For July, collections were reported at ₹1,82,075 crore. So far in 2024, total GST collections have reached ₹9.13 lakh crore, up 10.1% from ₹8.29 lakh crore during the same period in 2023.
The GST system was implemented on July 1, 2017, with assurances to states for compensation for revenue losses until June 2022 due to the GST rollout.
In its recent meeting on September 9, the GST Council, chaired by Finance Minister Nirmala Sitharaman, established a Group of Ministers (GoM) to explore potential reductions in GST rates for life and health insurance. This committee, led by Bihar’s Deputy Chief Minister Samrat Choudhary, is expected to submit its report by the end of October.
The Council also approved a reduction in GST on cancer medications from 12% to 5% and on namkeens from 18% to 12%. Additionally, a GoM has been formed to address compensation cess issues beyond March 2026, while a secretaries’ committee will focus on resolving the negative balance in Integrated Goods and Services Tax (IGST) to facilitate fund retrieval from states.
