NEW DELHI: Goods and services tax (GST) collection rose 10.9% to Rs 1,45,867 crore in November, making it the slowest pace of expansion since June 2021, but experts were upbeat on the prospects.
“During the month, revenues from import of goods is 20% higher and the revenues from domestic transactions (including import of services) are 8% higher than the revenues from these sources during the same month last year,” the finance ministry said in a statement.
Collections in November for transactions during October, the key festival month, were the fifth highest on record and marked the ninth straight month of over Rs 1.4 lakh crore mop-up, indicating that the measures taken by the Centre and the states to tone up the administration had seen collections stabilise around that level.
“The GST revenues above Rs 1.4 lakh crore for a consecutive period of nine months indicate that there is no effect of recession on the Indian economy so far. The IGST on imports has been down by 6-8% this month compared to the last 4 months (except October 2022, which was a festive month) which is an indicator that India is moving towards a more self-reliant economy,” said Saurabh Agarwal, tax partner at consulting firm EY India.
Tax collections have been ahead of the required growth rate with the overall kitty expected to be higher than the budgeted level, providing much-needed comfort to the government in meeting the fiscal deficit target of 6.4% of GDP for the current year, despite higher spending on fertiliser and food subsidies.
The government is upbeat about the prospects of the economy, banking on robust demand and high capex.
Among the states, in November, Rajasthan and Kerala (-2% each), Gujarat (-3%), Punjab (-10%) Himachal Pradesh (-12%) and Goa (-14%) saw a dip in collections. In contrast, Arunachal (55%), Manipur (42%), Bihar (28%) and Maharashtra (14%) were the states that recorded healthy growth, according to data released by the finance ministry.
“During the month, revenues from import of goods is 20% higher and the revenues from domestic transactions (including import of services) are 8% higher than the revenues from these sources during the same month last year,” the finance ministry said in a statement.
Collections in November for transactions during October, the key festival month, were the fifth highest on record and marked the ninth straight month of over Rs 1.4 lakh crore mop-up, indicating that the measures taken by the Centre and the states to tone up the administration had seen collections stabilise around that level.
“The GST revenues above Rs 1.4 lakh crore for a consecutive period of nine months indicate that there is no effect of recession on the Indian economy so far. The IGST on imports has been down by 6-8% this month compared to the last 4 months (except October 2022, which was a festive month) which is an indicator that India is moving towards a more self-reliant economy,” said Saurabh Agarwal, tax partner at consulting firm EY India.
Tax collections have been ahead of the required growth rate with the overall kitty expected to be higher than the budgeted level, providing much-needed comfort to the government in meeting the fiscal deficit target of 6.4% of GDP for the current year, despite higher spending on fertiliser and food subsidies.
The government is upbeat about the prospects of the economy, banking on robust demand and high capex.
Among the states, in November, Rajasthan and Kerala (-2% each), Gujarat (-3%), Punjab (-10%) Himachal Pradesh (-12%) and Goa (-14%) saw a dip in collections. In contrast, Arunachal (55%), Manipur (42%), Bihar (28%) and Maharashtra (14%) were the states that recorded healthy growth, according to data released by the finance ministry.
