India's GST revenue rose 22.9 percent in October, with import collections supporting growth

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GST collections up 22.9% in October

Highlights

GST collections rose 22.9 percent in October, with IGST on imports up 42.2 percent to 72,246 crore rupees.
From April to October 2023, gross GST collections totaled 14.8 lakh crore rupees and net collections 12.7 lakh crore rupees, up 13.2 percent and 12.6 percent, respectively.
Maharashtra recorded 13 percent growth, with domestic collections of 35,150 crore rupees, while Assam posted the fastest growth at 47 percent.

This article was translated from the original. Read the original version by our correspondent here.

Imports play a major role in October collections

According to Forbes India, figures released by the government on Sunday show that imports were the main driver of GST collection growth in October. IGST on imports rose 42.2 percent to 72,246 crore rupees, while gross domestic revenue increased 15.8 percent to 1.6 lakh crore rupees.

Refunds rose 6.5 percent to 27,934 crore rupees, taking net GST revenue up 25.6 percent to 2.03 lakh crore rupees. Net customs revenue rose 56.2 percent to 58,319 crore rupees, while net domestic revenue increased 16.4 percent to 1.5 lakh crore rupees.

Gross GST collections for April to October stood at 14.8 lakh crore rupees, 13.2 percent higher than the 13.1 lakh crore rupees collected in the same period last year. Net collections over the same period reached 12.7 lakh crore rupees, representing growth of 12.6 percent.

Uneven performance across states

Among the states, Maharashtra led with domestic collections of 35,150 crore rupees, up 13 percent. Karnataka followed with 15,922 crore rupees, up 18 percent; Gujarat with 13,516 crore rupees, up 16 percent; and Haryana with 11,529 crore rupees, up 17 percent.

Among the states with the fastest growth, collections rose 47 percent in Assam, while Uttar Pradesh and Andhra Pradesh each recorded growth of 24 percent. By contrast, Tamil Nadu’s growth was just 3 percent, with collections of 11,661 crore rupees. Sikkim, Puducherry, Ladakh, and Himachal Pradesh recorded declines or weaker performance, with growth of 28 percent, 7 percent, 20 percent, and 2 percent, respectively.

Our previous report on the possibility of bringing petroleum products under GST noted that state consent would be crucial to the move and that there was limited scope for major changes to current GST rates. The article also discussed administrative steps, including expanding the taxpayer base beyond 1.6 crore, improving compliance, and the formation of a 12-member standing committee by the GST Council.

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