In a robust display of economic momentum, GST collections for October reached ₹1.72 lakh crore, marking a 13% increase compared to the same period last year. This achievement stands as the second-highest monthly GST revenue, surpassed only by the record set in April 2023 at ₹1.87 lakh crore. The Finance Ministry attributes this impressive performance to the combined impact of economic growth, vigilant tax enforcement curbing evasion, and heightened festive season demand.
Steady Growth in Fiscal Year
The average gross monthly GST collection for the current fiscal year has displayed consistent growth, recording an 11% increase year-on-year at ₹1.66 lakh crore. This sustained growth indicates the resilience of the GST revenue stream.
Factors Contributing to Strong Performance
Economists, including Icra Chief Economist Aditi Nayar, attribute the positive GST collections to quarter-end adjustments related to transactions from the previous month. The overall economic momentum has further boosted revenue figures, leading to a notable year-on-year growth rate.
Outlook and Projections
Aditi Nayar states that the year-on-year growth rate in October 2023 has reached a 10-month high, indicating encouraging trends. Current projections suggest that Central GST (CGST) collections are expected to slightly exceed the Budget Estimate for the fiscal year 2024.
Revenue Breakdown for October 2023
The gross GST revenue for October 2023 stands at ₹1,72,003 crore, with Central GST contributing ₹30,062 crore, State GST at ₹38,171 crore, Integrated GST (including ₹42,127 crore from import of goods) at ₹91,315 crore, and cess (including ₹1,294 crore from import of goods) at ₹12,456 crore. The government has allocated ₹42,873 crore to CGST and ₹36,614 crore to SGST from IGST.
This substantial performance in GST collections reflects a resilient economic landscape and effective measures to curb tax evasion.
