GST Collections Surge to ₹1.87 Lakh Crore in October, Marking a 9% Year-on-Year Increase

In October, Goods and Services Tax (GST) collections hit ₹1.87 lakh crore, representing an 8.9% increase compared to the same month last year, as reported by the Ministry of Finance. This marks a steady rise from the ₹1.72 lakh crore collected in October 2023.

Recent data shows growth across all categories—Central GST (CGST), State GST (SGST), Integrated GST (IGST), and cess—indicating a positive trend in indirect tax revenue. For 2024 to date, GST collections have reached ₹12.74 lakh crore, a 9.4% increase from ₹11.64 lakh crore in the same period last year.

April 2024 witnessed a record high, with collections soaring to ₹2.10 lakh crore. In the previous fiscal year (2023-24), total gross GST collections amounted to ₹20.18 lakh crore, up by 11.7% from the year before.

The average monthly GST collection for FY 2023-24 was ₹1.68 lakh crore, exceeding the ₹1.5 lakh crore average of the prior year. This sustained increase in GST revenue underscores strong domestic consumption and robust import levels, highlighting the resilience of India's economy amidst global economic challenges.

Since its introduction on July 1, 2017, GST has been instrumental in transforming India's tax system. The GST (Compensation to States) Act, 2017 guarantees states compensation for revenue losses due to GST for five years.

The GST Council, led by the Union Finance Minister and comprising Finance Ministers from all states, has made strategic decisions on tax rates. In recent years, key items such as hair oil, toothpaste, soap, rice, curd, lassi, mobile phones, and certain appliances have benefited from GST rate cuts or exemptions, offering economic relief to consumers.