Goods and Services Tax (GST) collections in October 2023 witnessed a significant increase, totaling Rs 1.87 lakh crore, marking an 8.9% rise compared to the same month last year, according to data released by the finance ministry on Friday. This is an increase from Rs 1.72 lakh crore collected in October 2022.
Positive Economic Indicators
All components of GST—Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Integrated Goods and Services Tax (IGST), and cess—showed year-on-year growth in October. For the fiscal year 2024, the cumulative GST collection has reached Rs 12.74 lakh crore, reflecting a 9.4% increase over Rs 11.64 lakh crore collected during the same period last year.
In April 2023, GST collections peaked at a record high of Rs 2.10 lakh crore. For the entire financial year 2023-24, the total gross GST collection was recorded at Rs 20.18 lakh crore, representing an 11.7% increase from the previous fiscal year. The average monthly collection for this fiscal year stands at Rs 1.68 lakh crore, surpassing last year’s average of Rs 1.5 lakh crore.
Impacts on Consumers and Goods
This recent surge in GST collections highlights a positive trend in India’s economic landscape, driven by robust domestic consumption and increasing import activity. These figures suggest a healthy fiscal environment and bolster ongoing economic recovery efforts amid global uncertainties.
Since the introduction of GST on July 1, 2017, the Indian government has provided assurances to states regarding revenue compensation as outlined in the GST (Compensation to States) Act, 2017, for a period of five years. Recently, the GST Council has implemented substantial rate reductions or zero rates on essential items such as hair oil, toothpaste, washing powders, and staple foods like wheat and rice, benefiting consumers across the country.
The GST Council, which includes the Union Finance Minister and Finance Ministers from all states, continues to play a crucial role in shaping the GST framework to support economic growth.
