Festive season will bring in higher GST collections in coming months: Experts
After the Goods and Services tax collections for September showed a yearly jump of 6.5 per cent, the experts in this domain have expressed optimism for the collections in the upcoming months, citing the continued festive season and the government's focus to ensure a stable revenue trajectory.
The economic experts say that the current month's GST collections may seem underwhelming but they only reflect supplies of August, which is marked by the beginning of festive season purchases.
The finance ministry released figures of GST on October 1, in which the collections in September, in gross terms, stood at Rs 1.73 lakh crore. In September 2023, the total collection was to the tune of Rs 1.62 lakh crore.
"While the GST revenues for the month may be a little underwhelming, considering the fact these collections relate to supplies in August, which is typically the beginning of the festive season buying spree, resulting in increased revenues," said MS Mani, Partner at Deloitte India.
