Goods and Services Tax (GST) collections increased 8.9 percent year on year to Rs 1.87 lakh crore in October (for September sales), the second highest level of monthly collections seen since the indirect tax regime’s July 2017 rollout, owing primarily to an increase in domestic revenue rather than imports, according to data released by the Finance Ministry on Friday. GST receipts grew 7.9% net to Rs 1.68 lakh crore, according to the report. The increase in gross GST collections occurred after growth had slowed to a three-year low in September, despite a high rate of 42.8% for domestic refunds. While the growth rate in gross GST revenues has risen, it remains lower than the double-digit growth observed in the preceding two fiscal years. The highest-ever total GST collection of Rs 2.10 lakh crore occurred in April 2024. The increase in GST receipts in October was mostly due to an increase in domestic transactions, with imports contributing less. GST collections rose 7.9% net to Rs 1.68 lakh crore, according to the data. Gross GST collections increased after slowing to a three-year low in September, despite a high domestic return rate of 42.8%. While the growth rate of gross GST collections has increased, it remains lower than the double-digit growth seen in the previous two fiscal years. The greatest total GST collection of Rs 2.10 lakh crore was in April 2024. The rise in GST collections in October was mostly driven by an increase in domestic transactions, with imports contributing less.
