GST Collections Surge 8.9% YoY to Rs 1.87 Lakh Crore in October

The Goods and Services Tax (GST) is a significant part of India's tax system, designed to streamline the taxation process and enhance revenue collection for the government. In October, the GST collections reached an impressive Rs 1.87 lakh crore, marking an 8.9 percent increase compared to Rs 1.72 lakh crore collected in the same month last year. This growth is noteworthy as it represents the eighth consecutive month where GST collections have remained above the Rs 1.7 lakh crore threshold.

According to the latest government data, all components of GST saw an increase last month. The Central GST (CGST) collection amounted to Rs 33,821 crore, while the State GST (SGST) collection stood at Rs 41,864 crore. Additionally, the Integrated GST (IGST) collected was Rs 99,111 crore, and the cess amounted to Rs 12,550 crore. These figures indicate a robust performance across various sectors contributing to the GST.

For the first seven months of the current fiscal year, GST collections have risen by 9.4 percent, totaling Rs 12.74 lakh crore, compared to Rs 11.64 lakh crore during the same period last year. This consistent growth is a positive sign for the economy, especially when considering that the gross GST revenues from domestic transactions grew by 10.6 percent, reaching approximately Rs 1.42 lakh crore. Furthermore, revenues from the import of goods increased by 4 percent, totaling Rs 45,096 crore.

Interestingly, the government issued refunds worth Rs 19,306 crore during October, reflecting an 18.2 percent growth compared to the previous year. After accounting for these refunds, the net GST revenue collection rose by 8 percent, exceeding Rs 1.68 lakh crore. This increase in GST collection is a clear indicator of improved economic conditions, especially when juxtaposed with the previous two months, which saw a decline in collections.

In September, the growth rate of GST revenues was recorded at a mere 6.5 percent, the lowest since the pandemic began. The average GST revenue for the September quarter of FY 25 has decreased to Rs 1.77 lakh crore monthly, down from Rs 1.86 lakh crore in the June quarter of FY 25. This fluctuation in revenue highlights the challenges faced by the economy but also underscores the resilience shown in October's figures.

The rise in GST collections is a promising sign for India's economic recovery. It reflects not only the government's effective tax policies but also the resilience of businesses and consumers in adapting to changing economic conditions. As the country continues to navigate through various challenges, maintaining this upward trend in GST collections will be crucial for sustaining economic growth and ensuring the government's ability to fund essential services and infrastructure development.