GST
COLLECTION: ECONOMY
NEWS: GST
receipts’ growth rebounds in October, but still off target
WHAT’S
IN THE NEWS?
Collections surpass ₹1.87 lakh crore in October,
marking the second highest monthly collections on record, with growth mounting
to 8.9% in October from September’s 40-month low uptick of 6.5%
·
GST Collections in October 2024: Gross GST collections crossed ₹1.87 lakh crore in
October, marking the second-highest monthly collection on record. The growth
rate rebounded to 8.9%, up from September’s low of 6.5%.
·
Net Revenues After Refunds: Adjusted net revenues (after refunds) saw a
slower growth rate of 7.9%, totaling slightly over ₹1.68 lakh crore in October,
which is an improvement over September’s 3.9% growth.
·
High Collection Record: October’s GST revenues were the second-highest
ever, following April 2024’s peak collection of ₹2.1 lakh crore.
·
Budget Target Comparison: Despite the growth rebound, GST revenues are
still below the 2024-25 Budget target, which projected an approximate 11%
increase in net revenues.
·
Domestic and Import Revenue Growth: Growth in GST revenue from domestic transactions
rose to 10.6% in October (from 6% in September), while growth from imports
slowed to 3.9%, down from an 8% rise the previous month.
·
Fiscal Year Performance: In the first seven months of 2024-25, gross GST
revenues reached ₹12.74 lakh crore, a 9.4% increase over the same period in
2023-24. Net revenues after refunds rose by 9%, exceeding ₹11.27 lakh crore.
·
State-Wise Variations: There were wide differences among states in GST
revenue growth. Twelve states reported growth above the national average of
10.6%, while five states saw declines. Kerala led with a 20% rise, while
Arunachal Pradesh experienced a sharp 33% decline.
·
Increase in Refunds: Refunds to domestic taxpayers rose significantly, increasing by 42.8%
in October, following a 24% rise in September. This marked the third
consecutive month of improvement, with fewer refund rejections and a more
stable refund process.