October GST collections cross Rs 1.51 lakh crore, second highest on record

October GST collections cross Rs 1.51 lakh crore, second highest on record

October revenue is the second highest monthly collection after April 2022

The government collected Rs 1.52 lakh crore in Goods and Services Tax (GST) in October. It was up 16.6% year-on-year due to festival-related spending, higher tax rates and better compliance. This was the second highest monthly collection since the indirect tax regime came into force in July 2017. GST collection in April reached a record level of Rs 1.67 lakh crore.

Of the total GST total expenditure in October, Central GST (CGST) was Rs 26,039 million, State GST (SGST) Rs 33,396 million, Integrated GST (IGST) Rs 81,778 million (collected on import of goods). Seth’s cost was Rs.10,505. (including Rs 825 crore collected on import of goods), according to preliminary data released by the Finance Ministry on Tuesday.

“This is the ninth and eighth consecutive month when monthly GST receipts have crossed Rs 1.4 lakh crore,” the ministry said.

In September 2022, 83 million e-way invoices were generated, as against 77 million in the previous month.

Economists expect CGST collections to exceed the FY23 budget estimates of Rs 1.3-1.4 trillion.

“The sharp rise in October GST collection headlines reflects a combination of quarter-end inflows related to deals from the previous month and an increase in GST e-way invoices ahead of a strong festive season. With the festive season in October, GST e-way ICRA Chief Economist Aditi Nayar said the way bill generation is expected to remain high, it should strengthen collections in November.

Nair said the year-on-year growth in GST collections is expected to come down in October given the normalization base and this may continue in the coming months as well. “CGST collections are expected to exceed BE 1.3-1.4 trillion in 2023,” he added.

The CGST target has been set at Rs 6.6 trillion, excluding compensation tax, in the 2022 budget.

Further, the total revenue of the Center and the State for October was Rs 74,665 for CGST and Rs 77,279 for SGST after regular and provisional settlement.

October GST collections exceed INR 1,510 crore, the second highest on record, with major states reporting an increase in collections, indicating it is a widespread phenomenon across the country. The collection by the state saw an increase of 18% as compared to the same period last year.
Saurabh Agarwal, Tax Partner, EY India, said:

Agarwal said, “Both the revenue departments (CBDT and CBIC) are responsible for increasing the tax collection, so we can expect good collections in the coming months. It seems that it is on the way to become a self-sufficient economy.”