Onam bumper for Kerala with record ₹3,408 crore in GST collections in September

Thiruvananthapuram: The government’s efforts to put more money in people’s hands during the Onam season appear to have boosted tax revenue, with Kerala recording its highest ever monthly GST collection since the tax regime was introduced in 2017. The state collected ₹3,408 crore in GST in September. Although Onam was celebrated in August, traders remit the tax collected that month when they file their returns by September 20, resulting in higher GST revenue in September.

Of the ₹3,408 crore, ₹1,968 crore was allocated to Kerala through the IGST settlement mechanism. Under the system, tax collected on goods brought from outside the state is apportioned and transferred to the state where the goods are consumed. Kerala’s previous highest monthly GST collection was ₹3,272 crore in April 2024. The automobile sector accounted for a significant share of the GST revenue, with vehicle sales witnessing a surge during the Onam season. Overall, 65% of the GST revenue came from the sale of goods, while the remaining 35% came from services.

₹18 returns to treasury for every ₹100 spent
According to the government’s calculation, an average of ₹18 returns to the state treasury for every ₹100 it puts into the hands of people, as most products attract an 18% GST rate. The government spent more than ₹10,000 crore around Onam on welfare pensions, employee bonuses, festival allowances, financial assistance to various sections and the sale of products through Supplyco outlets. A significant portion of this money is subsequently spent in the market on goods and services, generating GST revenue for the government.