Revenue from Goods and Services Tax (GST) hit a 19-month low of 91,916 crore in September, down 2.7% from a year ago, data released by the finance ministry showed.

This is the first time that the tax collection has contracted on a year-on-year basis since the implementation of GST from July, 2017.

Tepid growth in revenue from taxes is emblematic of sluggish demand amid a slowdown in the economy. Besides, falling indirect tax revenue, data released by the government on Monday showed that output of India’s eight infrastructure sectors contracted for the first time in more than four years and declined 0.5% in August.

“The lower collections seem to be on account of the lower GDP (gross domestic product) growth numbers that we have seen as GST is a transaction tax that is immediately impacted by any decline in any economic activity. However the subsequent festival season is expected to improve collections.” MS Mani, Partner at Deloitte India said.

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