The collection of goods and services tax (GST) rose marginally in September to Rs 94,442 crore even though it remained below the targeted revenue of over Rs 1 lakh crore per month.

The GST collection rose from Rs 93,960 crore in August and is expected to increase further in the coming months on account of higher sales in the festival season.

Collections in July had declined partly because of the impact of the rate cut on 88 items.

The government had cited the delay in sale of items on which the GST rate was lowered on July 21 (but became effective from July 27) for the dip. It, however, said the actual impact of the rate cut would be known only from collections for August.

According to the estimates made in the 2018-19 budget by the revenue department, the government expects a monthly average of GST collections of Rs 1.15 lakh crore.

The finance ministry in a statement on Monday said 67 lakh businesses filed GST returns in September and deposited Rs 94,442 crore as taxes.

The Telegraph

Of this, Central GST (CGST) collection is Rs 15,318 crore, State GST (SGST) is Rs 21,061 crore, Integrated GST (IGST) is Rs 50,070 crore (including Rs 25,308 crore collected on imports) and cess is Rs 7,993 crore (including Rs 769 crore collected on imports), the ministry said.

“The total revenue earned by the Centre and the state governments after settlement in September 2018 is Rs 30,574 crore for CGST and Rs 35,015 crore for SGST,” it added.

Parag Mehta, partner, N.A. Shah Associates LLP, said: “With the government also undertaking data analytics the compliance level has increased substantially. E-way bill momentum has also ensured that all transactions are recorded. Now the festive season in the next three months should ensure collections of around Rs 1 lakh crore per month.”

The September revenue collections reflect the purchase and sales activities conducted in the month of August.