GST collections slow to a 12-month low of Rs 1.7 lakh crore in November

GST for November

GST collections slowed to a 12-month low of Rs 1.7 lakh crore in November compared with Rs 1.96 lakh crore in the previous month. The growth rate at 0.7 percent was also the slowest since the pandemic, provisional data showed.

The trend aligns with the GST rate rationalisation introduced on September 22.

Net GST collections increased 1.3 percent to Rs 1.52 lakh crore, as domestic revenue dipped 1.5 percent in domestic revenue.

The International Monetary Fund (IMF), in its latest staff report, noted that India’s economy is likely to remain on a firm footing this year despite the drag from steep US tariffs—helped in part by the boost from the recent GST cuts.

However, economists caution that receipts may soften in the coming months as economic momentum normalises. Manufacturing activity slowed to a nine-month low of 56.6 in November, according to data released by HSBC, hinting at early signs of tapering.