October GST Revenue Hits Second-Highest at Rs 1.87 Lakh Crore
The Goods and Services Tax (GST) revenue for October surged to Rs 1.87 lakh crore, recording the second-highest monthly collection since the GST regime’s inception in 2017.
Driven by heightened festival demand, the October figure shows an 8.9% increase compared to the Rs 1.72 lakh crore collected in October 2023. This follows the record GST collection of Rs 2.10 lakh crore in April 2024.
Breakdown of October GST Components
The October GST collection comprises Central GST (CGST) at Rs 33,821 crore, State GST (SGST) at Rs 41,864 crore, Integrated GST (IGST) at Rs 99,111 crore, and Cess at Rs 12,550 crore. Of the total GST revenue, domestic transactions alone contributed Rs 1.42 lakh crore, growing by 10.6%, while taxes on imports rose by approximately 4%, amounting to Rs 45,096 crore.
Analysts Predict Cooling in Consumer Spending
Saurabh Agarwal, tax partner at EY, highlighted that the single-digit growth in GST collections might suggest a slowdown in consumer spending, a shift from the robust surge observed in the previous fiscal year. “The collections made this month on account of the festive season, particularly the automobile sector’s performance, will be crucial in determining the short-term trend,” Agarwal noted. While festive demand is anticipated to provide a temporary boost, he warned of a cautious outlook for the near term.
Despite some uncertainties, Agarwal believes the long-term potential for GST collections remains strong, bolstered by India’s expanding consumer base and pro-growth policies. The net GST collections after refunds showed an 8% growth, reaching Rs 1.68 lakh crore, with refunds themselves growing by 18.2%.
This increase in GST collections demonstrates resilience in India’s consumer-driven economy, with future growth expected as economic policies continue to support expansion.
