India’s Goods and Services Tax (GST) collections in November 2024 showed a robust growth of 8.5%, reaching over Rs 1.82 lakh crore, driven by higher revenues from domestic transactions. This marks a significant increase from Rs 1.68 lakh crore collected in November 2023.
GST Collection Breakdown for October 2024
According to the latest government data, the breakdown of GST collections in October 2024 is as follows:
Central GST: Rs 34,141 crore
State GST: Rs 43,047 crore
Integrated IGST: Rs 91,828 crore
Cess: Rs 13,253 crore
Growth in November GST Revenue
The total gross GST revenue for November 2024 was over Rs 1.82 lakh crore, reflecting an 8.5% year-on-year growth compared to the same month last year.
Record-Breaking GST Collections in October 2024
October saw a remarkable GST performance, with collections amounting to Rs 1.87 lakh crore, the second-highest ever recorded. This represented a 9% annual growth. The highest-ever GST collection occurred in April 2024, when the total reached over Rs 2.10 lakh crore.
Domestic vs. Import-Based GST Collections
In November, refunds amounting to Rs 19,259 crore were issued, marking an 8.9% decline compared to the previous year. After accounting for refunds, the net GST collection stood at Rs 1.63 lakh crore, reflecting an 11% increase.
Expert Insights and Economic Outlook
Saurabh Agarwal, Tax Partner at EY India, noted that while the growth in tax collections, particularly in states like Delhi, Maharashtra, and Karnataka, can be attributed to the festive season, it is premature to consider this a long-term economic trend. He pointed out that month-on-month collections had declined despite the festive boost.
Agarwal also cited recent GDP data for the September 2024 quarter, indicating a potential slowdown in tax collections over the next few months. He highlighted concerns over the global geopolitical situation and possible consumer spending cuts, which could negatively impact short-term economic growth.
On a positive note, Agarwal emphasized the growth in GST collections from states such as Jammu & Kashmir, Bihar, Sikkim, Mizoram, Tripura, Assam, and Odisha, which indicates favorable economic momentum in these regions.
