The Finance Ministry announced on Wednesday that the government has received over Rs 1.72 lakh crore through GST in October, driven by greater compliance and the demand of the festive season. Next to the Rs 1.87 lakh crore collected in April 2023, this is the second-highest monthly collection.
October collection is based on products and services used in September.
According to the announcement, October’s gross GST revenue increased by 13% over the same month the previous year. It also stated that revenue from domestic transactions (including the import of services) during the month was 13% more than revenue from the same sources in the same month the previous year. Additionally, it stated that the average gross monthly GST collection for FY 2023–24 is already Rs 1.66 lakh crore, an 11% increase over the previous fiscal year.
Experts gave a number of explanations for the increase in collecting. Strong economic conditions and the tax authorities’ efforts to analyze data sets and identify short payments and evasion, according to MS Mani, Partner at Deloitte India, have aided in collecting. “There has been a notable increase in compliance across sectors and states as a result of the growing emphasis on audits driven by specific information available on various databases, not just the GST portal.” The increase in GST receipts in important manufacturing and consumption states also reflects this, the speaker added.
According to Parag Mehta, Partner at A Shah Associates, the time-barring period for FY 2017–18 is one of the causes of this increase. He said that significant collections had resulted from a wave of notices, an anti-evasion drive, DGGST investigations, and other measures. Moreover, September through December is a festive season during which significant consumer spending occurs on expensive goods like real estate, cars, gold, and vacation.
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