GST revenue collection up by 23% in Sept, collection stands at ₹1.17 lakh crore

Sikkim reported the highest rise of 144 per cent in September 2021 as compared to the same month last year, followed by Ladakh and Arunachal Pradesh at 61 per cent and 56 per cent, respectively.

The Union finance ministry on Friday released the September report on Goods and Services Tax (GST) collected in the month, which showed a rise of 23 per cent from the GST revenues collected in the same period last year. In September 2021, the central government collected ₹1,17,010 crore as GST revenue, of which ₹20,578 crore was Central Goods and Services Tax (CGST), ₹26,767 crore was State Goods and Services Tax (SGST), and ₹60,911 crore was Integrated Goods and Services Tax (IGST), and ₹8,754 crore was cess. Of the IGST revenues and cess collected, import of goods accounted for ₹29,555 crore and ₹623 crore, respectively.

The rise in this year’s September GST revenue from last year has been contributed by 30 per cent and 20 per cent higher revenues from import goods and domestic transactions, respectively.

The Centre has settled ₹28,812 crore to CGST and ₹24,140 crore to SGST from IGST as regular settlements, the ministry statement added. Following this, the total revenue of the government stands at ₹49,390 crore for CGST and ₹50,907 crore for SGST in September 2021.

The rise in this year’s September GST revenue from last year has been contributed by 30 per cent and 20 per cent higher revenues from import goods and domestic transactions – including import of services, respectively, an official statement from the ministry read.

According to data released by the finance ministry, with 144 per cent, Sikkim reported the highest rise in GST revenue collection in September 2021 as opposed to the same month last year. Meanwhile, Daman and Diu reported a minus 99 per cent dip in the GST revenue collections.

Top five states and Union territories (UTs) with respect to GST revenue collections:

1. Sikkim (144 per cent)

2. Ladakh (61 per cent)

3. Arunachal Pradesh (56 per cent)

4. Odisha (40 per cent)

5. Dadra and Nagar Haveli (35 per cent)

Bottom five states and UTs that showed less or dip in GST revenue collections:

1. Daman and Diu (- 99 per cent)

2. Lakshadweep (- 51 per cent)

3. Bihar (- 12 per cent)

4. Manipur (- 2 per cent)

5. Tripura (zero per cent)

The finance ministry statement also said that the monthly gross GST collection for the second quarter of the ongoing financial year (2021-2022) witnessed a 5 per cent surge with ₹1.15 lakh crore than the average monthly collection of ₹1.10 lakh crore in the first quarter of the year. “This clearly indicates that the economy is recovering at a fast pace. Coupled with economic growth, anti-evasion activities, especially action against fake billers have also been contributing to the enhanced GST collections,” the statement added.

The central government also released a GST compensation of ₹22,000 crore to states and UTs to meet their GST revenue deficit.

This development comes after Union finance minister Nirmala Sitharaman chaired the first physical GST Council meeting on September 17 with her state counterparts. In the meeting, many significant decisions were made, including the move to make food delivery companies such as Swiggy and Zomato, to collect and pay the GST instead of the restaurants they pick up food from. Other decisions included exemption of GST from life-saving drugs like Zolgensma – costing ₹16 crore each, used to treat Spinal-Muscular Atrophy, and extending concessional GST rates on certain coronavirus disease (Covid-19) medicines – Remdesivir and more – from September 30 to December 31, 2021.

However, any decision regarding GST on fuels – petrol and diesel, is yet to be made. After the meeting, Sitharaman said the GST Council discussed the matter in line with the directions of the Kerala High Court, and a consensus on now not being the right time was reached.