News Brief
India’s GST Revenues Surge By 8.5 Per Cent To Rs 1.82 Lakh Crore In November But Show Sequential Decline From October
November GST Collections Surge to Rs 1.82 Lakh Crore.
Gross Goods and Service Tax (GST) collections in November 2024 grew by 8.5 per cent year-on-year to Rs 1.82 lakh crore, up from Rs 1.68 lakh crore in the same month last year, according to government data.
This growth reflects sound economic activity, but the collections mark a decline from October’s Rs 1.87 lakh crore, the second-highest figure recorded since the implementation of GST in 2017.
In November, Central GST (CGST) collections stood at Rs 34,141 crore, State GST (SGST) at Rs 43,047 crore, Integrated GST (IGST) at Rs 91,828 crore, and cess at Rs 13,253 crore.
GST from domestic transactions rose by 9.4 per cent to Rs 1.40 lakh crore, while revenue from imports grew by 6 per cent to Rs 42,591 crore. The data reflects business activity from October, a festive month marked by Dussehra and Diwali, which traditionally drive consumption.
State-wise trends highlighted mixed results. States like Jammu and Kashmir, Delhi, Sikkim, and Maharashtra reported significant growth in collections, driven by festive consumption and increased compliance.
Experts note that while the festive season played a role in boosting revenue, the month-on-month decline signals caution. Saurabh Agarwal, Tax Partner at EY India, stated, “While the recent surge in tax collections, especially in states like Delhi, Maharashtra, and Karnataka, can be linked to the festive season, it’s too early to celebrate this as a broader economic trend. Month-on-month collections have declined, even after the festive boost.”
Adding to concerns, India’s manufacturing activity slowed in November. The Purchasing Managers’ Index (PMI) fell to 56.5 from 57.5 in October, reflecting a marginal dip in production momentum.
Policymakers now await the 55th GST Council meeting on 21 December in Jaisalmer, where strategies to enhance collections will be discussed. Experts suggest the focus will likely remain on improving compliance and expanding the tax base rather than increasing tax rates, as the government navigates this post-festive economic phase.
