GST revenue collection has been inconsistent this financial year, with some months showing strong growth while others lagged.
April recorded the highest GST revenue ever, exceeding ₹2 lakh crore, with gross receipts growing by 12.4% and net receipts by 15.5%.
July's collections were the third highest at over ₹1.82 lakh crore, marking a 10.3% increase.
October’s GST receipts (before refunds) were the second highest in the history of GST, showing a year-on-year growth of 8.9% and breaking a two-month decline trend.
Growth dipped significantly in June (7.3%) and hit a 40-month low in September (6.5%).
Net revenues improved from 3.9% in September to 7.9% in October, but overall growth has decreased to 9% from about 10.2% in August.
Indirect tax growth needs to accelerate to meet the Budget targets, though the deficit isn’t significantly at risk due to strong direct taxes and non-tax revenues.
GST collections reflect consumption patterns from the previous month, indicating private spending trends, especially during the festive season.
The RBI noted recent GST trends as a sign of slowing economic momentum but remains optimistic about improved consumer demand during festivals.
The GST Council is urged to consider lowering rates on items like cement and insurance to boost sales and offset potential revenue losses.
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