GST collection in Nov may scale 2nd highest level on the back of robust festive sales: Official

The Goods and Services tax collection had hit the Rs 2.1 lakh crore mark earlier in April.

India's Goods and Services Tax (GST) collection for November 2024 is expected to surpass Rs 1.87 lakh crore, recorded in October, making  it the second-highest monthly collection ever. The anticipated growth in GST revenue is attributed to robust domestic sales during the festive season, a senior government official said.

“So far, approximately Rs 1.70 lakh crore in GST collection has been received for November,” the official said, stressing that some revenue inflows, especially from Maharashtra and Jharkhand, are still pending due to the ongoing elections.

“The previous month’s collection was good, and November’s GST collection, which reflects consumption from October’s festive season, is expected to be slightly higher than Rs 1.87 lakh crore. However, crossing the Rs 2-lakh-crore mark may be difficult.”

The Goods and Services Tax collection had hit the Rs 2.1-lakh-crore mark earlier in April.

Domestic GST revenue collection, typically accounted for until the 20th of every month, witnessed significant growth fuelled by heightened consumption during the festive season. “October consumption is always fantastic, and that will reflect in November’s GST collection figures. Imports also tend to pick up in the last 10 days of the month, contributing further to the revenue,” the official elaborated.

Election Impact 

Delayed filings in key states like Maharashtra and Jharkhand due to elections have marginally impacted the pace of revenue collection. “Maharashtra’s GST collection, which is substantial, has not yet been accounted for because of the elections. Once this comes in, along with additional inflows from other states, we should see further growth,” the official noted.

Despite some delays, the overall growth trajectory remains steady. “We usually observe a 5-7 percent growth in GST revenue during the remaining 10 days of the month,” the official said.

In October 2024, the gross GST collection stood at Rs 1.87 lakh crore, marking the second-highest collection since the inception of the tax regime. This reflects continued economic recovery and strong compliance, especially during high-demand periods.

The GST collection has remained above the Rs 1.7-lakh-crore mark for the eighth consecutive month so far.

GST was rolled out on July 1, 2017, aiming to create a 'one nation, one tax' regime by replacing a complex structure of multiple indirect taxes. GST simplifies taxation, reduces cascading tax effects, promotes ease of doing business, and ensures better compliance and transparency.

The GST Council, which oversees its implementation, continues to face challenges like rate rationalisation to simplify the current multi-tier tax structure, revenue shortfalls faced by states post-GST compensation, inclusion of excluded items like petroleum and real estate, and improving compliance and plugging tax evasion loopholes. Regular meetings and revisions by the GST Council aim to fine tune the system to align with evolving economic needs.