GST Oct haul 2nd highest at ₹1.72 tn

livemint.com:

₹1.72 trillion in Goods and Services Tax (GST) in October, a 13% increase from a year earlier, marking the second-highest monthly haul since the new tax regime debuted in 2017. Overall, GST receipts so far this year are in line with the 10.5% nominal GDP growth rate projected by the finance ministry and reflect the trends in tax administration efficiency as well as consumption. The average gross monthly GST collection in FY24 is ₹1.66 trillion, up 11% from FY23.

“A mid-year collection of such an increased number is definitely worth a cheer, and the ongoing festivities-driven consumption could help this continue," said Abhishek Jain, indirect tax head and partner, KPMG, indicating a rising trend in consumption during the festive season, which is expected to drive up tax revenues. He added that the significantly increased collection could be linked to the settlement of disputes for FY17-18, as the normal period of limitation was ending on 30 September. After settling taxes on inter-state sales, the central government received ₹72,934 crore in October, while states received ₹74,785 crore, the finance ministry said.

Proceeds from the GST cess levied on items such as high-end automobiles stood at a robust ₹12,456 crore during the month. Experts said the growth in GST collection has been aided to a considerable degree by improved administrative efficiency and a structural shift—micro enterprises taking GST registration that broadens the tax base and increases the formalization of the economy. “The second-highest collection ever is a testament to the rapid growth of the Indian economy.