Festive demand has fueled an 8.5 per cent year-on-year growth in gross Goods and Services Tax (GST) collections for November, reaching a total of Rs 1.8 lakh crore. According to government data released on Sunday, the Central GST collection stood at Rs 34,141 crore, State GST at Rs 43,047 crore, Integrated IGST at Rs 91,828 crore and cess at Rs 13,253 crore.
The total gross GST collection stood at Rs 1.68 lakh crore in the same month last year, it said.
In October, the GST collection of Rs 1.87 lakh crore was the second-best GST mop-up with 9 per cent annual growth. The highest-ever GST collection was reported in April this year with over Rs 2.1 lakh crore.
It further added that during the month under review, GST from domestic transactions grew 9.4 per cent to Rs 1.40 lakh crore, while revenues from tax on imports rose around 6 per cent to Rs 42,591 crore. Refunds worth Rs 19,259 crore were issued during November, registering an 8.9 per cent decline over the year-ago period.
After adjusting refunds, net GST collection increased by 11 per cent to Rs 1.63 lakh crore.
“The domestic GST revenue growth of 10% plus in FY25 seems to support the GDP data which indicates an increase in domestic consumption. The import GST revenue growth of 6% also backs foreign trade data which indicates slower growth of non-petroleum imports," said MS Mani, Partner at Deloitte India.
He also added that the projected GDP growth of 7 per cent in FY25 augers well for GST collections in the remaining four months of the current fiscal year as the collections in the first eight months have exceeded that of FY25 by more than Rs 1 lakh crore and it is ahead of the budget estimates for FY25.
However, he also raised concern over single-digit growth in some of the larger states such as Haryana at 2 per cent, Punjab and Telangana at 3 per cent also negative growth in Andhra Pradesh at -10 per cent, Rajasthan and Chhatisgarh at -1 per cent. He said that these states have have significant manufacturing presence and considerable economic impact.
