According to the Ministry of Finance’s announcement on December 1, the government’s Goods and Services Tax (GST) collections surged by 15 per cent year-on-year in November, reaching Rs 1.68 lakh crore.
The November GST collections, standing at Rs 1.68 lakh crore, depict a 2 per cent decrease compared to October’s GST collection of Rs 1.72 lakh crore.
For nine consecutive months, the monthly GST collection has consistently surpassed the Rs 1.5-lakh-crore milestone.
The most recent GST data brings the average monthly collection for 2023-24 to Rs 1.67 lakh crore. Over the years, monthly GST collections have shown a notable increase. Beginning below Rs 1 lakh crore monthly in its inaugural year of 2017-18, collections saw a rapid surge post the pandemic-stricken year of 2020-21, averaging Rs 1.51 lakh crore in 2022-23.
During November, Central GST amounted to Rs 30,420 crore, State GST totaled Rs 38,226 crore, Integrated GST reached Rs 87,009 crore, and compensation cess stood at Rs 12,274 crore.
Additionally, the government allocated Rs 37,878 crore to Central GST and Rs 31,557 crore to State GST from Integrated GST. Consequently, after settlement, the total revenue for the month amounted to Rs 68,297 crore for the Centre and Rs 69,783 crore for State GST.
According to a statement from the finance ministry, “Revenue from domestic transactions (including import of services) in the month exhibits a 20 percent increase compared to the same period last year.”
While November’s overall GST collections slightly dipped compared to October, the year-on-year growth of over 15 percent marks the highest in 2023-24. Notably, November’s YoY increase in GST collections stands as the most significant in 11 months.
According to the 2023-24 Budget, the Centre anticipates a 12 percent increase in its GST collections for the current fiscal year. As of the first eight months, the gross GST collected stands at Rs 13.32 lakh crore, marking an 11.9 percent surge from the corresponding period last year.
The PMI data coincides with the statistics ministry’s announcement of a faster-than-expected growth of the Indian economy, reaching 7.6 percent in the July-September period, notably with the manufacturing sector expanding by 13.9 percent year-on-year.
The rising trend in GST collections is likely to persist throughout 2023-24, attributing it in part to audits and investigations.
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It’s noteworthy that significant growth in GST (compared to last year) is observed in many manufacturing states, signaling an upturn in demand and consumption.
