NEW DELHI: With a rise in demand due to the festive season, the Goods and Services Tax (GST) collection of the Union and state governments shot up to Rs 1.87 trillion, or Rs 1.87 lakh crore, in October, marking the second-highest collection since GST was introduced in 2017. The highest-ever GST collection was reported in April, with a total of Rs 2.1 trillion, or Rs 2.10 lakh crore.

On a year-to-year basis, net GST revenue after refunds amounted to Rs 1.68 trillion for October 2024, reflecting a 7.9 per cent increase from Rs 1.55 trillion in October 2023.

According to official figures, from April to October 2024, gross GST collections on a year-to-date basis have reached a whopping Rs 12.74 trillion, which is a 9.4 per cent increase compared to Rs 11.64 trillion during the same period a year ago.

The breakdown of GST collections includes Rs 33,821 crore from Central GST, Rs 41,864 crore from State GST, Rs 99,111 crore from Integrated GST, and Rs 12,550 crore from cess. The growth in GST revenues was driven by a 10.6% increase in domestic GST revenue, which reached Rs 1.42 lakh crore, and a 4% rise in import taxes, amounting to Rs 45,096 crore.

The Finance Ministry noted that the festive season, particularly the performance of the automobile sector, played a crucial role in boosting GST collections. Additionally, improved compliance and enforcement measures contributed to higher revenue.

Despite the positive trend, experts have cautioned that the single-digit growth in GST collections signals a potential slowdown in consumer spending, which surged in the previous fiscal year. The overall outlook for the near future remains cautious, with the government closely monitoring economic indicators to ensure sustained growth.

State-wise data for October showed that Maharashtra led the collections with Rs 31,030 crore, followed by Karnataka with Rs 13,081 crore, Gujarat with Rs 11,407 crore, Tamil Nadu with Rs 11,188 crore, and Haryana with Rs 10,045 crore. However, some northeastern states, including Arunachal Pradesh and Nagaland, registered a contraction in GST collections.

The rise in GST collections is a positive indicator of economic performance, reflecting increased consumer activity and effective tax administration. As the government continues to focus on economic recovery and growth, the sustained increase in GST revenues will play a crucial role in supporting public finances and development initiatives.