Gross Goods and Services Tax (GST) collection for October reached Rs 1.87 lakh crore, up 8.9% from last year, marking the second-highest monthly tally since GST’s introduction in July 2017. Of This, the share of Central GST stood at Rs 33,821 crore, State GST at Rs 41,864 crore, Integrated IGST at Rs 99,111 crore and cess at Rs 12,550 crore. In October 2023, GST collections stood at Rs 1.72 lakh crore.
During October 2024, GST from domestic transactions increased by 10.6% to Rs 1.42 lakh crore, while revenue from import taxes grew by approximately 4% to Rs 45,096 crore. India’s GST refunds surged 18.2% year-on-year to Rs 19,306 crore during the month of October. Notably, April 2024 saw the highest-ever GST collection in the country at over Rs 2.10 lakh crore.
In October 2024, 14 states/UTs out of 38 saw GST growth above the national average of 10.6%. In October, Maharashtra recorded the highest GST collection among states/UTs at Rs 31,030 crore followed by Karnataka (Rs 13,081 crore), Gujarat (Rs 11,407 crore), Tamil Nadu (Rs 11,188 crore), and Haryana (Rs 10,045 crore).
Northeast Indian saw a slump in GST collection with Arunachal Pradesh down 33%, Nagaland 8%, and Manipur 5%.
GST Collection – What Drove The Surge?
The rich GST collections in October was mainly driven by increased domestic transactions. On the contrary, the contribution from imports slowed. Gross domestic revenue of GST increased by 10.6% in October, compared to 5.9% in September. The gross imports GST revenue rose by 3.9% in October as against 8% in September. According to several media reports, the surge in domestic demand was driven by the festive season enthusiasm.
Experts see GST collection growth despite higher refunds as the sign of stabilization, but states’ with slower growth raises concerns among them.
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