October records second-best GST mop-up at Rs 1.87 lakh crore, registers 8.9 percent YoY jump

Gross Goods and Services Tax (GST) collections in October stood at Rs 1.87 lakh crore, registering a yearly jump of 8.9 percent, according to data released by the Ministry of Finance on November 1. In October 2023, total GST collection stood at Rs 1.72 lakh crore. 

As per the official data, collections in CGST, SGST, IGST and cess increased year-on-year in October. The Central GST collection stood at Rs 33,821 crore, State GST at Rs 41,864 crore, Integrated IGST at Rs 99,111 crore and cess at Rs 12,550 crore during the month.

So far in 2024, the total GST collection has been higher at 9.4 percent at Rs 12.74 lakh crore compared to Rs 11.64 lakh crore mopped up in the corresponding period of 2023. 

October 2024 recorded the second-best GST mop-up. The highest ever collection was in April 2024 at over Rs 2.10 lakh crore. 

During the month under review, GST from domestic transactions grew 10.6 per cent to Rs 1.42 lakh crore, while revenues from tax on imports rose about 4 per cent to Rs 45,096 crore. 

Refunds worth Rs 19,306 crore were issued during the month, registering 18.2 per cent growth over the year-ago period. After adjusting refunds, net GST collection grew 8 per cent at over Rs 1.68 lakh crore. 

Deloitte India Partner MS Mani said the buoyancy in GST collections is on account of an excellent combination of festive season sales and increased compliance. 

“The driver appears to be domestic supplies... While many large states have recorded an increase in GST revenue above 9 per cent, some of them and many of the smaller states have shown a below average increase, which would be an area of concern for those states,” Mani said. 

During the financial year 2023-24, the total gross GST collection was recorded at Rs 20.18 lakh crore, an increase of 11.7 percent, compared to the previous fiscal year. 

The average monthly collection for the FY24 stood at Rs 1.68 lakh crore, surpassing the previous year’s average of Rs 1.5 lakh crore. 

The surge in recent GST collections reflects a positive trajectory for India’s economy, underscoring robust domestic consumption and buoyant import activity, the ministry said. The figures bode well for the country’s fiscal health and economic recovery efforts, signalling resilience amid global uncertainties. 

GST was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for five years. 

Hair oil, toothpaste, soap, detergents and washing powder, wheat, rice, curd, lassi, buttermilk, wristwatches, TV up to 32 inches, refrigerators, washing machines, mobile phones are among key items on which GST rates have been slashed substantially. 

The GST Council, chaired by Union Finance Minister and comprising state counterparts, are slated to meet this month and take up the recommendations of the Group of Ministers (GoM) on rate rationalisation on over 100 items. 

(With inputs from agencies)