GST Hits ₹1.89 Lakh Cr in Sept, Up 9.1% YoY, 6 Points

GST Revenues Touch ₹1.89 Lakh Crore in September — 9.1% Growth Signals Strong Fiscal Momentum

1. Headline GST Numbers

1. GST collections for September 2024 reached ₹1.89 lakh crore.

2. Growth Rate: Up 9.1% YoY, the fastest in 4 months.

3. This marks the 9th consecutive month of collections above ₹1.8 lakh crore.

2. Month-on-Month & Quarterly Comparison

1. August Growth: 6.5% vs September’s 9.1%.

2. Q2 FY25 Collections:

   • Total: ₹5.71 lakh crore

   • Growth: 7.7% YoY

   • Previous Quarter Growth: 11.7%

3. Table: GST Collection Snapshot

4. Impact of Rate Restructuring

1. Effective From: September 22.

2. Old Slabs: 28% & 12%.

3. New Slabs: 18% & 5%.

4. Key Shift:

   • 90%+ goods moved to the lower tax bracket.

5. Short-Term Effect:

   • Subdued non-durable spending as consumers waited for rate cuts.

6. Expected Outcome:

   • Temporary dip, recovery with stronger compliance.

5. Economic Forecasts & Impact

1. RBI Growth Projection:

   • Revised to 6.8% (from 6.5% earlier).

2. S&P Global Ratings:

   • Retains growth outlook at 6.5%.

3. GST Cuts Expected To:

   • Boost consumption.

   • Cushion against US tariff impact.

6. Forward Outlook

1. Collections may stay modest in the short term due to rate restructuring.

2. Recovery expected as:

   • Consumer demand revives.

   • Compliance improves.

3. April’s record ₹2.4 lakh crore remains unmatched so far.

✅ Key Financial Takeaways

1. ₹1.89 lakh crore signals strong fiscal performance despite structural changes.

2. 9.1% growth suggests resilience ahead of festive demand.

3. Rate cuts may create a short-term dip but long-term buoyancy is expected.

4. Policy support and governance continue to drive compliance.

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