India’s Goods and Services Tax (GST) collections soared to Rs 1.87 lakh crore in October 2024, an 8.9% increase compared to the Rs 1.72 lakh crore collected in October 2023, the Finance Ministry reported on Friday. This marked the second-highest monthly GST collection in India’s fiscal year 2024-25, underscoring a strong festive season and enhanced compliance.
In September 2024, GST collections had reached Rs 1.73 lakh crore, illustrating steady growth. The cumulative GST collections for the fiscal year until October 2024 surged by 9.4 per cent, totaling Rs 12.74 lakh crore, up from Rs 11.64 lakh crore during the same period in 2023.
The Ministry’s data detailed growth across all segments of GST for October, with collections encompassing:
– Central GST (CGST): Rs 33,821 crore
– State GST (SGST): Rs 41,864 crore
– Integrated GST (IGST): Rs 99,111 crore
– Cess: Rs 12,550 crore
This breakdown reflects robust gains, driven primarily by increased domestic transaction revenue and stable growth in import tax revenues.
October’s GST revenue from domestic transactions jumped by 10.6 per cent year-on-year, reaching Rs 1.42 lakh crore. Import taxes also recorded a 4 per cent rise, totalling Rs 45,096 crore, underscoring the consistent growth in India’s economic activities.
GST refunds issued in October amounted to Rs 19,306 crore, reflecting an 18.2 per cent increase compared to the same month last year, indicating improved processing and efficiency in the system.
The strong October GST collection was largely attributed to brisk sales during the festive season and improved tax compliance. The month’s collection also stands as the second-highest GST revenue record for the fiscal year 2024-25, only surpassed by April 2024’s unprecedented Rs 2.10 lakh crore.
Analysis of state-wise data reveals that among the 38 states and union territories, 14 recorded higher-than-average growth in GST collections. Maharashtra led with Rs 31,030 crore in collections, reflecting a 14 per cent increase from the previous year. Other top contributors included:
– Karnataka: Rs 13,081 crore (9 per cent growth)
– Gujarat: Rs 11,407 crore (17 per cent growth)
– Tamil Nadu: Rs 11,188 crore (4 per cent growth)
– Haryana: Rs 10,045 crore (15 per cent growth)
While most states reported growth, some regions witnessed a contraction. North-eastern states such as Arunachal Pradesh saw a decline of 33 per cent, Nagaland by 8 per cent, and Manipur by 5 per cent. Additionally, Himachal Pradesh and Chhattisgarh recorded slight decreases of 2 per cent and 1 per cent, respectively.
The Ministry noted that the broad-based collection growth reinforces the effectiveness of GST in bolstering India’s revenue framework, despite certain regional disparities. The GST system, implemented in July 2017, has continued to evolve, with monthly records often reflecting trends in economic activities, regional production, and consumption patterns.
