Photo used for representation purpose only.

Growth in India’s Gross Goods and Services Tax (GST) collections slumped to a 40-month low of 6.5% in September, yielding revenues of ₹1,73,240 crore, about 1% lower than the tally in August.

Net GST receipts, after adjusting for refunds made to taxpayers, were 3.9% higher than a year ago, marking the slowest growth in this financial year. However, net collections were 1.5% higher than August’s receipts of ₹1,52,782 crore.

In the preceding month, net GST receipts had grown 6.5% while gross collections were up 10%.

Domestic revenues were up 5.9% prior to refunds, and were 4.5% higher after adjusting for refunds, provisional numbers from the Central Board of Indirect Taxes and Customs (CBIC) showed. Growth in gross revenues from imports outpaced domestic revenues for the third straight month, rising 8% in September.

GST refunds continued to grow at a healthy pace for the second successive month, with domestic refunds to taxpayers rising 24.3% in September, while export related refunds of Integrated GST (IGST) revenues were up 39.2%. Overall refunds were 31% higher, compared with a 38% uptick in August and an over 19% contraction in Jul