Gross goods and services tax (GST) collections came in at Rs 1.46 trillion in November (October transactions), up 11% on year but 4% lower sequentially, reflecting a slowing of the consumption momentum and easing of inflation. The November figure is the lowest since August’s figure of Rs 1.44 trillion, despite the festive season.
Government officials, meanwhile, have indicated that the Centre’s own pre-devolution GST revenue for the full fiscal may be higher than the Budget Estimate by around Rs 1.5 trillion. Higher inflation and pent-up demand have boosted the revenue.
The average monthly GST collections this fiscal have been Rs 1.49 trillion as against Rs 1.23 trillion last fiscal. “Monthly GST revenues have been at over Rs 1.4 trillion for nine consecutive months now,” said a finance ministry statement on Thursday. “During the month (November), revenue from import of goods was 20% higher and the revenue from domestic transactions (including import of services) is 8% higher than the revenue from these sources during the same month last year,” it said.
According to the data, out of the gross GST revenue, Central GST was Rs 25,681 crore, state GST Rs 32,651 crore, integrated GST Rs 77,103 crore (including Rs 38,635 crore collected on import of goods) and cess Rs 10,433 crore (including Rs 817 crore collected on import of goods).
The government also settled Rs 33,997 crore to CGST and Rs 28,538 crore to SGST from IGST as regular settlement.
The total revenue of the Centre and the states after regular settlements in the month of November 2022 is Rs 59,678 crore for CGST and Rs 61,189 crore for the SGST, the finance ministry said.
Suvodeep Rakshit, senior economist, Kotak Institutional Equities noted that the GST collection was in line with expectations and indicated fading of the festive demand. “The GST collections this year has held up above the Rs 1.4 trillion mark in every month.
MS Mani, partner, Deloitte India said that since GST collections from import of goods has shown a significant increase, it is expected that the customs collections would also be higher. “The GST collection targets set for the year are likely to be exceeded. Businesses would expect that the continuing buoyancy in collections leads to GST rate rationalisation in the next financial year,” he further said.
Amongst states, Bihar (28%), Arunachal Pradesh (55%), Manipur (42%), Maharashtra (16%), Karnataka (13%) registered a strong growth in GST revenue year-on-year basis in November.