Nov GST collection to surpass INR 1.87 lakh crore, driven by festive season demand

Robust domestic sales and delayed inflows from key states expected to bolster November's revenue figures

November 28, 2024

Collections have already reached INR 1.70 lakh crore, with further inflows pending from states like Maharashtra and Jharkhand

The October GST collection of INR 1.87 lakh crore marked the second-highest monthly collection since GST's inception

Delayed filings due to elections in key states have marginally slowed revenue inflows for November

GST revenue has consistently remained above INR 1.7 lakh crore for the eighth consecutive month

According to senior government officials, India’s Goods and Services Tax (GST) revenue for November 2024 is expected to surpass the INR 1.87 lakh crore collected in October. This would make it the second-highest monthly GST collection since its inception. The anticipated growth is attributed to strong domestic sales during October’s festive season.

Currently, GST collections for November stand at INR 1.70 lakh crore. However, due to ongoing elections, delayed filings from major states like Maharashtra and Jharkhand have temporarily slowed the pace of revenue inflows. Officials estimate that once these inflows are accounted for, November’s total collection will surpass October’s figure, though crossing the INR 2-lakh-crore mark may remain out of reach.

October’s GST collection reflected heightened consumption during the festive period, a trend that typically boosts revenues. Domestic collections, accounted for until the 20th of every month, saw significant growth, complemented by a rise in imports during the latter part of October.

The GST system, introduced in July 2017 to unify India’s tax structure, is pivotal in economic recovery and compliance improvements. Despite consistent monthly revenues exceeding INR 1.7 lakh crore, the GST Council is actively addressing challenges, including rate rationalisation, state revenue shortfalls, and the inclusion of excluded sectors like petroleum and real estate. These efforts aim to refine and align the tax regime with the country’s evolving economic landscape.

Source: Moneycontrol

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