GST collections soar to ₹1.87 lakh crore in October, up 9% on-year

In October, Goods and Services Tax (GST) collections reached ₹1.87 lakh crore in gross terms, reflecting an 8.9% increase over the same month last year, according to data released by the Ministry of Finance on Friday. This figure marks a steady rise from the ₹1.72 lakh crore collected in October 2023.

The latest data reveals growth across all categories—Central GST (CGST), State GST (SGST), Integrated GST (IGST), and cess—demonstrating an overall positive trend in indirect tax revenue. In 2024 thus far, GST collections totalled ₹12.74 lakh crore, a 9.4% rise from ₹11.64 lakh crore gathered during the same period in 2023.

This fiscal year saw a historic high in April, with collections reaching ₹2.10 lakh crore. The previous financial year, 2023-24, recorded a total gross GST collection of ₹20.18 lakh crore, up by 11.7% compared to the preceding fiscal year.

The average monthly GST collection for FY 2023-24 stood at ₹1.68 lakh crore, surpassing the ₹1.5 lakh crore monthly average recorded in the year prior.

The sustained rise in GST revenue highlights the strength of domestic consumption and robust import levels, signalling resilience in India’s economy amid global economic pressures.

Since its introduction on 1 July 2017, GST has played a pivotal role in reforming India’s tax landscape. The GST (Compensation to States) Act, 2017, assured states of compensation for any revenue losses due to GST implementation for five years.

The GST Council, chaired by the Union Finance Minister and comprising Finance Ministers from all states, has also made strategic decisions on tax rates.

In recent years, key items such as hair oil, toothpaste, soap, rice, curd, lassi, mobile phones, and certain appliances have seen GST rate cuts or exemptions, providing economic relief to consumers.