GST Surge: Impact of Rate Rationalisation on India's Tax Landscape
India's Gross GST collection rose by 9.1% to over Rs 1.89 lakh crore in September, driven by increased sales after rate rationalisation. GST from imports rose by 15.6%, while refunds increased by 40.1% year-on-year. The reforms also made 375 items cheaper, reflecting the GST 2.0 impact.
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- India
In a significant development for India's fiscal landscape, the country's Gross GST collection saw a noticeable increase of 9.1%, reaching over Rs 1.89 lakh crore in September. This surge is attributed to heightened sales following a strategic GST rate rationalisation implemented last month.
According to government data released on Wednesday, while the Gross Goods and Services Tax (GST) mop-up stood at Rs 1.73 lakh crore in the same month the previous year, it was slightly lower at Rs 1.86 lakh crore just a month ago. Notably, the domestic revenue grew by 6.8% to Rs 1.36 lakh crore, alongside a 15.6% rise in tax from imports, totaling Rs 52,492 crore.
Furthermore, GST refunds also witnessed a notable increase, up by 40.1% year-on-year to Rs 28,657 crore. The recent GST 2.0 reforms resulted in lower prices for 375 items across various sectors, ranging from kitchen staples to automobiles, effective from September 22.
(With inputs from agencies.)
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