GST mop up grows 11% on rising consumer spend
Indirect tax collections soar to Rs1.46 lakh cr in Nov; Remained above Rs1.4 lakh cr for 9th months in a row
image for illustrative purpose
October and November are festival months, which drove up purchases of goods and services, fueling GST numbers once again. In October, individuals splurged on real estate, automobiles, vacations, and other essential items, said Rajat Mohan, senior partner, AMRG & Associates
New Delhi: The collections from Goods and Services Tax (GST) grew by 11 per cent to about Rs1.46 lakh crore in November on increased consumer spending and better compliance. This is the ninth month in a row that the revenues have remained above the Rs1.4 lakh crore mark. However, the collection in November was the lowest since August.
In October, GST collections had touched the second-highest level of Rs1.52 lakh crore on festive spending. The gross GST revenue collected in the month of November 2022 is Rs1,45,867 crore of which Central GST is Rs25,681 crore, State GST is Rs32,651 crore, Integrated GST is Rs77,103 crore (including Rs38,635 crore collected on import of goods) and cess is Rs10,433 crore (including Rs817 crore collected on import of goods). "The revenues for the month of November 2022 are 11 per cent higher than the GST revenues in the same month last year, which itself was Rs1,31,526 crore," the Finance Ministry said in a statement. KPMG Partner Indirect Tax Abhishek Jain said continuing festive procurements, year-end reconciliations of input tax credits, credit notes, etc. would have played a significant role in the GST revenue uptick. N.A. Shah Associates, Partner, Indirect Tax, Parag Mehta said the major factoRsfor the increase in collections are the festive and wedding seasons. "There has also been a major increase in sales for real estate and vehicle markets. Overall, there is substantial spending by consumers. Further, the authorities have been cracking down on tax evaders, defaulters, fake invoice instances etc," Mehta said.
AMRG & Associates Senior Partner Rajat Mohan said GST collections for the month of October 2022 are encouraging and now it seems to be stabilizing around 1.5 lakh crores.
"October and November are festival months, which drove up purchases of goods and services, fueling GST numbers once again. In October, individuals splurged on real estate, automobiles, vacations, and other essential items," said Mohan.
