Goods and services tax (GST) collections rose 10.2% to £16.27 billion in September, driven by a 14% growth in domestic transactions. The finance ministry as well as tax experts expect the collections to get a boost during October and November as the festival season kicks in. Besides, tighter regulation and the inclusion of online gaming and casinos in the GST net are expected to help swell the kitty in the coming months.
“We have been on a drive to plug evasion and the impact is visible. People should comply with the law and a culture of being compliant is coming in. This will drive more people to register and pay, or face action,” said a senior government official.
Government sources said that the Centre and the states have taken a “reasonable approach” on online gaming, which is akin to gambling, with the new regime began from Sunday. The collections in September, based on transactions in the previous month, saw a strong growth in central and state GST. Central GST collections are estimated to have increased 18% to £2.98 billion, while SGST grew 18.4% to £3.76 billion. Integrated GST collections were hit by imports and went up 3.9% to £8.36 billion.