Goods and Services Tax (GST) revenue for November 2024 is expected to surpass October's collection of Rs 1.87 lakh crore, according to a senior government official. This would make it the second-highest monthly GST collection since the tax regime's inception in 2017.
"So far, approximately Rs 1.70 lakh crore has been collected for November," the official noted, adding that revenues from major states like Maharashtra and Jharkhand are pending due to ongoing elections. "Once these inflows are accounted for, November's GST revenue is projected to slightly exceed Rs 1.87 lakh crore. However, crossing the Rs 2-lakh-crore mark remains unlikely."
Festive Season Boosts Domestic Consumption
The growth in GST collections is attributed to robust domestic sales during the festive season in October. "October is traditionally a high-consumption month, and this trend will reflect in November's GST figures," the official explained. Enhanced imports in the last 10 days of October have also bolstered revenue.
October 2024's GST revenue of Rs 1.87 lakh crore marked the second-highest monthly collection, just behind April 2024's record Rs 2.1 lakh crore. Notably, GST revenue has remained above Rs 1.7 lakh crore for eight consecutive months, signalling a strong economic recovery and improved compliance.
Election-Related Delays
The ongoing elections in Maharashtra and Jharkhand have delayed some filings, impacting the pace of revenue collection. Maharashtra, which contributes significantly to the GST pool, is yet to account for its figures. "We typically see a 5-7% growth in the remaining days of the month, which should further strengthen November's final tally," the official said.
GST's Impact Since 2017
Since its rollout on July 1, 2017, GST has revolutionized India's indirect tax landscape, replacing a maze of multiple taxes with a unified system. It has promoted ease of doing business, reduced cascading tax effects, and improved compliance.
Challenges Ahead
Despite the consistent revenue growth, challenges persist. The GST Council continues to work on rate rationalization, addressing revenue shortfalls for states post-compensation, and including items like petroleum and real estate under GST. Regular Council meetings aim to refine the system to meet India's evolving economic requirements.
GST performance in November 2024 underscores the resilience of the tax regime and the economy, with rising compliance and strong domestic demand setting a positive tone for the fiscal year.
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