News

Published: November 2, 2024
Updated: November 2, 2024

India's October GST Collection Hits Rs 1.87 Lakh Crore, Marking Second-Highest Monthly Total

Strong October GST Collection Reflects Robust Growth

India's GST revenue in October 2024 soared to Rs 1.87 lakh crore, an 8.9% year-on-year increase, as reported by the Ministry of Finance on November 1. This marks the second-highest monthly GST collection on record, following the peak in April 2024 at Rs 2.10 lakh crore. In comparison, October 2023’s collection was Rs 1.72 lakh crore, highlighting the ongoing rise in tax revenues.

Sector-Wise Contributions: CGST, SGST, IGST, and Cess

Breaking down October’s GST figures, the Central GST (CGST) collected was Rs 33,821 crore, State GST (SGST) amounted to Rs 41,864 crore, and Integrated GST (IGST) stood at Rs 99,111 crore. Additionally, cess collections reached Rs 12,550 crore. These increases reflect the positive impact of festive season sales and improved tax compliance, as Deloitte India Partner MS Mani noted.

Yearly Growth in Total GST Collection

For 2024 so far, the total GST collection has grown 9.4% to Rs 12.74 lakh crore compared to Rs 11.64 lakh crore in the same period last year. The average monthly GST revenue for FY24 currently stands at Rs 1.68 lakh crore, significantly exceeding last year’s average of Rs 1.5 lakh crore. In the 2023-24 fiscal year, the gross GST collection reached Rs 20.18 lakh crore, reflecting an 11.7% rise from the previous fiscal year.

Boost from Domestic Sales and Imports

Domestic GST collections in October rose 10.6% to Rs 1.42 lakh crore, driven by strong consumer spending, while import-related GST increased by about 4% to Rs 45,096 crore. Meanwhile, refunds worth Rs 19,306 crore were issued, marking an 18.2% growth compared to last year, with the adjusted net GST collection at Rs 1.68 lakh crore, up 8% from the previous year.

Regional Trends and Economic Indicators

While large states reported more than 9% increases in GST collections, some smaller states showed below-average growth, which may pose future concerns. Nonetheless, the current GST performance signals positive momentum for India’s economic recovery, emphasizing strong domestic consumption and import activity.

Upcoming GST Council Meeting for Rate Revisions

The GST Council, led by the Union Finance Minister and state representatives, is expected to meet this month to discuss recommendations on rate rationalizations for over 100 items, including essential goods where GST rates have been previously reduced, such as hair oil, toothpaste, and home appliances. The impressive GST collection figures for October underscore India's resilient economic recovery, bolstered by consumer demand and a strong compliance framework. The steady growth in tax revenue paints a positive outlook for the country's fiscal health and aligns with efforts to sustain economic stability amid global challenges.