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• Gross Goods and Services Tax (GST) collections surged 13.4 per cent year-on-year in October (for sales in September) to Rs 1.72 lakh crore, the second-highest level since the July 2017 rollout of the indirect tax regime.

GST  Numbers

• With the latest print, GST revenue collections have averaged at Rs 1.66 lakh crore per month during April-October 2023, up 11.4 per from the monthly average of Rs 1.49 lakh crore seen during April-October 2022.
• Overall, the total GST collections stood at Rs 1,72,003 crore in October, recording the highest year-on-year growth rate in 10 months.
• Out of the total GST revenue in October, Central GST — the tax levied on intra-state supplies of goods and services by the Centre — was Rs 30,062 crore, State GST — the tax levied on intra-state supplies of goods and services by the states — was Rs 38,171 crore, Integrated GST (IGST) — the tax levied on all inter-state supplies of goods and services — was Rs 91,315 crore (including Rs 42,127 crore collected on import of goods) and cess was Rs 12,456 crore (including Rs 1,294 crore collected on import of goods).
• Revenues from domestic transactions (including import of services) were 13 per cent higher the figure from the same month last year, the Finance Ministry said in its statement.
• In October, the government settled Rs 42,873 crore to Central GST and Rs 36,614 crore to State GST from Integrated GST. As a result, the total revenue for the month after settlement was Rs 72,934 crore for the Centre and Rs 74,785 crore for State GST.

State wise GST revenue

• GST revenues increased across the country in October, with at least 25 states/union territories recording a growth rate higher than 10 per cent.
• Maharashtra, Karnataka, Uttar Pradesh and Tamil Nadu — the states with the highest SGST share — recorded a growth of 14 per cent, 12 per cent, 10 per cent and 9 per cent, respectively.
• However, strife-torn Manipur posted a 19 per cent decline, while Himachal Pradesh, hit by floods and landslides, recorded a 2 per cent contraction.
• After settlement, the SGST revenue, which accounts for SGST revenue and the share of SGST from the IGST, totalled Rs 4.97 lakh crore during April-October, an increase of 12 per cent from the period last year.

Reasons for GST increase

• With the recent notices being sent by the GST authorities for recovery of non-payment of tax, or underpayment, or of wrongful availment of input tax credit, some businesses would have made payments to settle the disputes.
• The government could possibly explore rate rationalisation as the next measure under GST.
• This significantly increased collection could be linked to settlement of disputes for FY 17-18 as the normal period of limitation was ending on September 30.
• A mid-year collection of such an increased number is definitely worth a cheer and the ongoing festivities driven consumption could help this continue.
• The growing emphasis on audits led by specific information available on various databases, not only on the GST portal, has led to a significant increase in compliance across sectors and states.
• This is also reflected in the upsurge in the GST collections across key manufacturing and consuming states.
• A pickup in GST revenues would also imply a significant support for the government’s fiscal arithmetic, as it is likely to see a shortfall in the disinvestment receipts and as direct tax revenue growth remains a step behind.

Source- Indian Express