NEW DELHI: Goods and Services Tax (GST) collections rose 8.9% to Rs 1,87,346 crore — the second highest monthly collection — due to a healthy mop-up on domestic transactions. The highest ever collection of Rs 2.1 lakh crore was reported in April.
The latest monthly data showed that collections from domestic sources in Oct, based on transactions in Sept, grew 10.6% to Rs 1,42,251 crore, while those from imports lagged, registering a 3.9% increase to Rs 45,000 crore. GST numbers have emerged as a key indicator of economic activity in the country.
The latest statistics suggest moderation in trade due to the softening of commodity prices, muted consumption demand in several parts of the globe, as well as logistics-related challenges.
The numbers come amid concerns over slowing consumption demand, especially in urban areas, although Diwali sales were strong. “Recent GST collections indicate a potential slowdown in consumer spending in India, which surged in the previous fiscal year. The singledigit growth signals a cooling-off period. The collections made this month on account of the festive season, particularly the performance of the automobile sector, will be crucial in determining the short-term trend. While the festive season is expected to boost collections, the overall outlook for the near future remains cautious,” said Saurabh Agarwal, tax partner at EY.
Official data also showed a 42% jump in refunds on the domestic account to almost Rs 10,500 crore, resulting in an 18% increase in overall refunds, which were pegged at Rs 19,306 crore in October. Most tax practitioners were upbeat about the trend.
“The sharp increase in refunds indicates the stabilisation of the refund process and reduction in rejections due to interpretative issues,” said MS Mani, partner , Deloitte India.
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