Driven by festive season shopping, India’s Goods and Services Tax (GST) revenue for October rose by 4.6% year-on-year to reach ₹1.96 trillion. This growth came despite recent tax rate cuts on a wide range of items.
According to official data, tax rates on 375 goods were reduced from September 22nd. This list included essential kitchen items, electronic goods, and vehicles. The cuts were timed to coincide with the first day of Navratri, a period considered auspicious for buying new things.
The October figures indicate that sales were bolstered by festive purchases and pent-up demand. Many buyers had reportedly postponed their purchases until after Prime Minister Narendra Modi’s Independence Day speech, where he announced the impending GST rate reductions.
Here’s a breakdown of the revenue:
- Gross GST Collection: ₹1.96 trillion (Up from ₹1.87 trillion in October last year)
- Domestic GST Revenue: ₹1.45 trillion (A 2% increase, reflecting local sales)
- Revenue from Imports: ₹50,884 crore (A significant 13% jump)
However, the annual growth rate of 4.6% in October was lower than the previous months’ average of 9%. Furthermore, GST refunds saw a sharp rise of 39.6%, reaching ₹26,934 crore. After accounting for these refunds, the net GST revenue for October stood at ₹1.69 trillion, showing a mere 0.2% increase compared to the same period last year.
