New Delhi: In October 2024, India’s Goods and Services Tax (GST) revenue reached a significant milestone, recording a collection of Rs 1.87 lakh crore, a 9% increase compared to October 2023. This growth signals robust economic activity and an efficient tax administration framework that has been progressively strengthened since GST’s inception.
A key driver behind the growth was the substantial rise in domestic transactions, which surged by 10.6% year-over-year to Rs 1.42 lakh crore. This rise reflects the impact of steady consumer demand, increased business activity, and ongoing efforts to expand the tax base across various sectors. Revenue from imports, though increasing at a slower rate, also saw growth, with a 4% year-on-year rise to Rs 45,096 crore. Together, these figures point to a balanced growth trajectory driven by both domestic economic resilience and international trade.
Breaking down the October 2024 GST revenue, the collection includes Rs 33,821 crore from Central GST (CGST) and Rs 41,864 crore from State GST (SGST). The Integrated GST (IGST) contributed the highest share, amounting to Rs 99,111 crore, which includes tax collected on inter-state transactions and imports. Additionally, a cess of Rs 12,550 crore was collected to fund specific central government initiatives, including compensation to states.
Also Read : GST Council recommends tax cut
One of the critical financial operations in October was the issuance of refunds. Rs 19,306 crore in refunds were processed during the month, an 18.2% increase compared to the same period in 2023. This efficient refund process is essential for maintaining liquidity in the economy and ensuring that businesses continue to operate smoothly without tax-related delays. After accounting for refunds, the net GST revenue collected for October 2024 stood at Rs 1.68 lakh crore, showing an 8% increase over the previous year’s net revenue for the month.
These figures highlight the sustained growth in India’s GST revenue, attributed to improved compliance measures, technological advancements in tax administration, and economic policies that promote ease of doing business. The government has emphasized initiatives to streamline the GST framework further, aiming for sustained growth through enhanced transparency, simplified tax processes, and targeted measures against tax evasion.
The consistent rise in GST collections is a positive indicator of India’s economic health and reflects a maturing GST system that is integral to the nation’s fiscal stability. As India continues to strengthen its GST framework, expectations remain high that future months will continue this upward trend, benefiting both the government’s revenue and the wider economy.
