By Martin Shwenk Leade
Copyright indiatimes
India collected Rs 1.89 lakh crore as goods and services tax (GST) in September, up 9.1% year-on-year, official data showed on Wednesday, defying expectations of a slowdown in consumption due to postponement of some big-ticket purchases ahead of GST rate cuts.GST collection data for September relates to transactions in August. “This indicates there has not been any significant slowdown in economic activity in anticipation of the GST rate cuts during the month of August,” MS Mani, tax partner at Deloitte India, said.Festivals to Amplify ConsumptionExperts also noted that there was a steep 40% increase in refunds. There was a general expectation that the collections would remain muted in September with consumers expected to hold back purchases until new GST rates became effective on September 22. “The recent collection numbers clearly affirm that India’s consumption story continues to be driven by a robust and resilient domestic economy,” said Saurabh Agarwal, partner at EY. The growth was also backed by impressive 15.6% growth on collection from imports, largely due to proactive stocking by retailers and ecommerce platforms in anticipation of the high festive season demand. Going forward, experts said the full impact of GST rate rationalisation may slow down the collection growth, reflecting in October and November collections, but they expect it to stay in the positive territory, buoyed by festive demand.Live Events“Looking ahead, the festive season is likely to further amplify consumption, with these structural and behavioural dynamics potentially boosting formal revenues significantly,” said Manoj Mishra, partner and tax controversy management leader at Grant Thornton Bharat.“The trend underscores that discretionary demand remains strong, while the simplified GST framework continues to stabilise and facilitate economic activity,” he added. Abhishek Jain, indirect tax head and partner at KPMG, said, “Another significant aspect is that this growth has continued despite the discontinuation of GST revenue from online money gaming businesses.”While the new online gaming Act came into effect only on October 1, companies had shut down operations as soon as parliament passed the bill on August 22.Add as a Reliable and Trusted News Source Add Now!
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