The Goods and Services Tax (GST) collection for the month of October 2023 has achieved a milestone, reaching an impressive ₹1.72 lakh crore. This substantial revenue collection stands as the second-highest ever recorded, following April 2023, and it exhibits a remarkable year-on-year growth of 13%, according to the Ministry of Finance.
The latest GST collection figures underscore the recovery and resilience of India’s economy. As the country continues to rebound from the economic challenges posed by the COVID-19 pandemic, the consistent rise in GST collections signifies a positive trend. The October collection, amounting to ₹1,72,256 crore, is indeed significant for multiple reasons. It not only marks a substantial increase compared to the previous year but also demonstrates steady revenue generation for the government.
Factors contributing to the growth in GST collection
Several factors have contributed to the remarkable growth in GST collections:
1. Robust economic recovery
India’s economy has been displaying resilience and vigor, driven by increased economic activities and higher consumer spending.
2. Enhanced compliance
The strict implementation of GST compliance measures has led to improved tax collections. It has encouraged businesses to adhere to taxation regulations and submit their GST returns promptly.
3. Growth in trade activities
The expansion of trade activities, especially in sectors such as manufacturing, services, and e-commerce, has bolstered tax revenue.
4. Rising imports
The rise in imports and international trade has played a pivotal role in augmenting GST collections. The Ministry of Finance has expressed its optimism regarding the continued growth in GST collections. While the second wave of the pandemic posed challenges to economic recovery, the government’s focused efforts, coupled with strong macroeconomic fundamentals, have fostered a conducive environment for economic expansion.