According to government data released on Tuesday, India's Goods and Services Tax (GST) collections for September 2024 have shown a promising trend. The gross GST collection increased by 6.5 percent year-on-year, amounting to approximately Rs 1.73 lakh crore. This growth signifies a solid recovery in economic activity, as GST revenue for September 2023 was recorded at Rs 1.63 lakh crore. In comparison, the mop-up in August 2024 stood at Rs 1.75 lakh crore, indicating a slight decline from the previous month.

Detailed Revenue Breakdown

Delving deeper into the data, it is notable that domestic tax revenue has also seen a growth of 5.9 percent, totaling around Rs 1.27 lakh crore for September. Furthermore, revenue generated from the import of goods rose by 8 percent, amounting to Rs 45,390 crore. These figures reflect a robust increase in economic activities, particularly in trade and domestic consumption.

During this period, the GST department issued refunds totaling Rs 20,458 crore, marking a significant 31 percent increase compared to the same timeframe last year. This indicates the government's efforts to streamline the refund process for taxpayers. After accounting for refunds, the net GST revenue for September 2024 stands at Rs 1.53 lakh crore, which is a 3.9 percent increase over the previous year.

Upcoming Changes to the Anti-Profiteering Policy

In a significant policy shift, the GST anti-profiteering system will no longer be effective from April 1, 2025. This decision was communicated through a recent notification from the GST policy cell of the government. The notification states that from October 1, 2024, all pending complaints regarding anti-profiteering will be resolved by the Principal Bench of the GST Appellate Tribunal (GSTAT) instead of the Competition Commission of India (CCI).

This change aligns with the recommendations made by the GST Council during its 53rd meeting on June 22, 2024. The Council suggested amendments to Section 171 and Section 109 of the Central GST Act, 2017, which will abolish the anti-profiteering provision under GST. This move has generated mixed reactions, as consumers will not be able to lodge complaints against companies that do not pass on the benefits of GST rate reductions after the specified date. However, any complaints filed prior to April 1, 2025, will still be addressed by the Principal Bench of the GST Appellate Tribunal until a final decision is reached.

The GST Council's recommendation to set a deadline for receiving new anti-profiteering applications also highlights its intent to simplify the GST framework and encourage compliance among businesses.

In conclusion, the September 2024 GST collections reflect a positive trend in revenue growth, showcasing the resilience of the Indian economy. However, the changes to the anti-profiteering policy will significantly impact how consumers can engage with companies regarding price adjustments related to GST rate cuts. It will be crucial to monitor how these developments unfold in the coming months.

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