October 2024 Records the 2nd Highest GST Collection, Driven by Domestic Sales

In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second highest collection ever, on the pick up in domestic sales and rectified complaints. Rs 33,821 crore, was the Central GST collection, Rs 41,864 crore, was the State GST collection, Rs 99,111 crore was the integrated IGST collection and Rs 12,550 crore was the cess collected in the month.

From the data released by the government, the total gross Goods and services tax (GST) revenue rose to 8.9% to Rs 1,87,346 crore. In October 2023 the collection stood at Rs 1.72 lakh crore.

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

GST in the review month from domestic transactions has surged to 10.6% to Rs 1.42 lakh crore and the revenues via tax on imports have surged to 4% to Rs 45,096 crore.

In the month the refunds of Rs 19,306 crore were being furnished, enrolling an 18.2% rise over the year-ago period.

Post adjusting refunds the rise in the net GST collections was 8% at over Rs 1.68 lakh crore.

The same rise in the GST collections is due to the effective combination of festive season sales and surged compliance.

The driver seems to be domestic supplies and many bigger states have recorded a rise in the GST revenue of more than 9%, from these states some and many of the smaller states have depicted a below-average rise which shall be the area of concern for those states.

The modest increase in monthly GST collections suggests a cooling trend, pointing to a possible decline in consumer spending in India, which had previously experienced a surge last fiscal year.

He stated that the collections from November will provide a clearer insight into festive demand, and the performance of the automobile industry will play a key role in shaping the short-term trend.

Although the festive season is anticipated to increase revenue, the near-term outlook remains wary due to ongoing uncertainties. However, the long-term prospects for GST collections are favourable, driven by India’s growing consumer market and the government’s pro-growth initiatives.

Tax experts said that the collections show a stronger economy.

Tax experts mentioned that with the approaching November GST council meeting the discussions on facilitating the tax rate structure and continued focus on trade facilitation areas are anticipated.

The GST Council, chaired by the Union Finance Minister and comprising state counterparts, is to be held this month and take up the Group of Ministers (GoM) suggestions on rate rationalization towards 100 items.