India's GST collection increases 4.6% to ₹1.96 trillion in October

India’s gross goods and services tax (GST) collections rose 4.6 per cent year-on-year to about ₹1.96 trillion in October, supported by festival season purchases, despite a recent cut in tax rates, government data released on Saturday showed.

 

The increase came even as GST rates on 375 items — ranging from kitchen staples to electronics and automobiles — were reduced with effect from September 22, coinciding with the first day of Navratri, considered an auspicious time for buying new goods.

 

The October numbers reflect strong festival sales and pent-up demand. Many consumers had delayed their purchases after Prime Minister Narendra Modi announced in his Independence Day speech that GST rates would be reduced ahead of Diwali. The rate cut eventually took effect at the onset of Navratri.

 

 

Gross GST collection in October stood at ₹1.96 trillion, compared with ₹1.87 trillion in the same month last year. In August and September, collections were relatively subdued at ₹1.86 trillion and ₹1.89 trillion, respectively.

 

However, the year-on-year growth rate of 4.6 per cent in October was lower than the average 9 per cent increase recorded in previous months.

 

Domestic GST revenue, which indicates local sales, grew 2 per cent to ₹1.45 trillion, while revenue from imports surged about 13 per cent to ₹50,884 crore during the month.

 

GST refunds rose sharply by 39.6 per cent year-on-year to ₹26,934 crore. After refunds, net GST revenue for October stood at ₹1.69 trillion, marking a marginal 0.2 per cent increase from a year earlier.