NEW DELHI: A surge in festival demand pushed the Goods and Services Tax (GST) collected by the Union and state governments in October to Rs 1.87 lakh crore, marking it the second-highest collection since the new indirect regime was rolled out on July 1, 2017. The highest GST collection was recorded in April 2024, at Rs 2.10 lakh crore.The October figure comes with annual growth of 8.9%, finance ministry data released on Friday showed. In October 2023, the total GST revenue was Rs 1.72 lakh crore. The latest growth is on account of a rise in domestic sales as well as enhanced compliance. The gross GST collection includes Central GST of Rs 33,821 crore, State GST of Rs 41,864 crore, Integrated GST of Rs 99,111 crore, and Cess collection of Rs 12,550 crore for the month of October 2024. In the month under review, GST revenue from domestic transactions increased by 10.6%, reaching Rs 1.42 lakh crore. Meanwhile, revenue from taxes on imports saw a rise of approximately 4%, totalling Rs 45,096 crore.According to Saurabh Agarwal, tax partner at EY, the recent GST collections indicate a potential slowdown in consumer spending in India, which surged in the previous fiscal year. The single-digit growth signals a cooling-off period. “The collections made this month on account of festive season, particularly the performance of the automobile sector, will be crucial in determining the short-term trend. While the festive season is expected to boost collections, the overall outlook for the near future remains cautious. Despite short-term uncertainties, the long-term prospects for GST collections remain promising due to India’s expanding consumer base and the government’s pro-growth policies,” Agarwal added.The net GST collections (after the refunds) during the month show a growth of 8% to Rs 1.68 lakh crore. Refunds recorded a growth of 18.2%.
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