India’s Goods and Services Tax (GST) revenue in October 2024 reached Rs. 1.87 lakh crore, showing an 8.9% increase compared to October 2023. This is the second-highest monthly GST collection since GST was introduced in 2017, highlighting strong economic activity and a rise in local demand.
After deducting refunds, the net GST revenue was over Rs. 1.68 lakh crore, a 7.9% increase from last year. This growth rate improved from September, which had a slower growth of 3.9%, the lowest this fiscal year. However, overall GST collections for 2024-25 are still below the Budget’s target of 11% growth.
From April to October 2024, total GST collections were Rs. 12.74 lakh crore, marking a 9.4% increase from last year. Net revenues after refunds grew by 9% to Rs. 11.27 lakh crore. Despite this progress, the growth rate is still below the expected yearly target, suggesting challenges in meeting fiscal goals.
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Domestic sales played a big role in October’s growth, with local transactions increasing by 10.6%, much higher than September’s 6%. This rise reflects stronger local demand, particularly after the monsoon season. Meanwhile, revenue from imports slowed down, growing only by 3.9% compared to 8% the month before, showing a shift towards more domestic revenue sources.
The report also showed big differences between states. Kerala had the highest growth in GST revenue with 20%, followed by Gujarat at 18%. In contrast, some northeastern states saw declines, with Arunachal Pradesh facing a 33% drop, and Nagaland and Manipur seeing decreases of 8% and 5% respectively. These variations highlight different economic conditions across states.
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October’s total collection of Rs. 1.87 lakh crore includes both central and state GST, along with integrated GST from interstate trade, which alone brought in Rs. 90,000 crore, showing strong interstate trade. While October’s collection is a positive sign, analysts note that maintaining this growth is essential for the government to reach its revenue targets.
In conclusion, October’s high GST collection shows strong economic activity and local demand. However, since overall growth is still below the yearly goal, the coming months will be crucial for meeting fiscal targets.
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