October Gross GST Collections Reach ₹1.72 Lakh Crore

In October, India's Gross Goods and Services Tax (GST) collections rebounded to ₹1.72 lakh crore, a 13.4% YoY increase and the highest in 10 months.

In October, India witnessed a significant rebound in its Gross Goods and Services Tax (GST) collections, reaching a 10-month high of ₹1.72 lakh crore. This growth of 13.4% year-on-year is the sharpest uptick since December 2022, reversing a three-month trend of deceleration. Several factors contributed to this impressive recovery, including increased domestic transactions, higher services imports, and robust GST levies on goods imports.

Monthly Uptick and Comparison:

  • October’s GST collections surged by 13.4% to reach ₹1.72 lakh crore.
  • This marked a 5.7% increase compared to September, which saw a slowdown in indirect tax growth.
  • The 13.4% revenue growth was the most substantial year-on-year increase since December 2022, breaking a three-month trend of deceleration.

Factors Behind the Rebound:

  • Domestic Transactions and Services Imports: The uptick in October’s revenues was driven by a 13% increase in domestic transactions and services imports.
  • Goods Imports: While the Finance Ministry did not disclose the revenue growth from goods imports, it’s estimated that GST levies on goods imports increased by 13.9% in October, outpacing growth from domestic transactions.
  • GST Compensation Cess Collections: Collections from GST Compensation Cess, which includes levies on goods imports, reached a record high of ₹12,456 crore in October, surpassing the previous highest collection received in April.

State GST Revenue Trends:

  • The average monthly GST collection for FY 2023-24 stands at ₹1.66 lakh crore, representing an 11% increase over the previous financial year.

Deadline Effect:

  • Experts attribute the strong October GST collections to factors such as the time-barred period for financial year 2017-18, compliance deadlines, and measures to curb evasion.
  • Festive spending and efforts to settle disputes for 2017-18 also contributed to the boost in collections.

Revenue Breakdown:

  • October’s GST revenues included Central GST (CGST) of ₹30,062 crore, State GST of ₹38,171 crore, and Integrated GST (IGST) of ₹91,315 crore.
  • The government settled ₹42,873 crore to CGST and ₹36,614 crore to SGST from IGST, resulting in a total revenue of ₹72,934 crore for CGST and ₹74,785 crore for SGST in October 2023 after regular settlements.

Source [gst.gov.in]

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