In October, India’s Goods and Services Tax (GST) revenue reached Rs 1.87 lakh crore, marking a significant annual increase of 8.9%, according to the Finance Ministry’s data released on Friday. This represents an increase from Rs 1.72 lakh crore collected in October of the previous year. The collection included contributions from Central GST (CGST), State GST (SGST), Integrated GST (IGST), and the cess, all of which saw year-on-year growth.
2024 GST Collection Overview
From January to October 2024, GST revenue has totaled Rs 12.74 lakh crore, reflecting a 9.4% increase compared to Rs 11.64 lakh crore collected over the same period in 2023. April 2024 saw a record-breaking monthly collection of Rs 2.10 lakh crore, highlighting a strong start to the fiscal year. In the financial year 2023-24, GST collections reached Rs 20.18 lakh crore, an 11.7% increase over the previous fiscal period. The monthly average collection in FY 2023-24 stood at Rs 1.68 lakh crore, higher than the previous year’s monthly average of Rs 1.5 lakh crore.
Strong Domestic Demand and Resilient Economic Activity
The uptick in GST collections reflects India’s stable domestic demand and robust import activity. The higher revenue inflows underscore positive trends in economic recovery and fiscal stability, despite ongoing global economic uncertainties.
GST’s Role Since Its Introduction in 2017
Introduced on July 1, 2017, the Goods and Services Tax simplified India’s tax structure by merging various indirect taxes under one system. States were assured compensation for any revenue losses linked to GST implementation for five years, under the GST (Compensation to States) Act, 2017. The federal GST Council, led by the Union Finance Minister and including state finance ministers, oversees rate adjustments and other GST-related policies to ensure fair distribution.
GST Benefits for Common Goods
Key consumer products—such as hair oil, toothpaste, soap, washing powders, basic food items like wheat and rice, and electronics including mobile phones, wristwatches, and certain household appliances—have benefited from GST rate cuts or exemptions, making everyday items more affordable for the public.
This year’s GST data continues to signal a resilient Indian economy and a positive fiscal outlook, supported by both domestic consumption and stable growth in manufacturing and services.
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