GST collections jump 11% to ₹1.46 lakh crore in November
The collection in November pertains to economic activity and transactions in Oct
Goods and Services Tax (GST) collection in November saw an 11% year-on-year growth to ₹1.46 lakh crore, exceeding the ₹1.40 lakh crore mark for the ninth consecutive month, although the number was lower than the second highest collection ever of ₹1.52 lakh crore in the month of October.
Experts said monthly collection of GST, a weathervane of economic health, is robust and that ₹1.40 lakh crore is the new normal.
A minor sequential decline could be on account of weakening of festival demand and the cascading effect of global headwinds, they added. The collection in November pertain to transactions and economic activity in October.
Saurabh Agarwal, tax partner, EY India said: “GST revenue above 1.4 lakh crores for a consecutive period of 9 months indicates that there is no effect
of recession on the Indian economy so far.” GDP data for the second quarter of the year, ending September 30, released on Wednesday, showed that the Indian economy expanded by 6.3%. Chief economic advisor V Anantha Nageswaran said while discussing the GDP data that India’s economy is expected to expand by 6.8-7% in 2022-23.
That will make India one of the fastest growing major economies in the world.
Experts are confident about strong collections in months ahead. MS Mani, partner at Deloitte India said, “With the continuing stability in GST collections since the beginning of this financial year, the GST collection targets set for the year are likely to be exceeded.”
They, however, expressed surprise over a fall in GST revenue in Gujarat, which is one of the key manufacturing states. According to data released by Union finance ministry on Thursday, GST collection in Gujarat fell by 2% from ₹9,569 crore in November 2021 to ₹9,333 crore in November 2022.
“It seems some technical glitch or some error in tax deposit by one or two major industries. In absence of sectoral data it is immediately difficult to ascertain the fact. Yes, global headwinds might have some impact on Indian manufacturing sector,” one of them said, requesting anonymity.
Technical error or some industries missing tax payment cannot be ruled out as other manufacturing states have shown healthy year-on-year double-digit growth,this person added. Maharashtra saw a 16% growth in GST revenue to ₹21,611 crore in November . Karnataka reported 13% growth to ₹10,238 crore, Haryana 13% (₹6,769 crore ), Andhra Pradesh 14% (₹3,134 crore) and Tamil Nadu 10% (₹8,551 crore).
Major states to register a decline in November are, Himachal Pradesh 12% (₹672 crore), Punjab 10% (₹1,669 crore),
Rajasthan -2% (₹3,618 crore), Kerala 2% (₹2,094 crore), and Goa 14% (₹447 crore), according to the official data.
The gross GST revenue collected in the month of November is ₹1,45,867 crore of which central GST (CGST) is ₹25,681 crore, state GST (SGST) is ₹32,651 crore, integrated GST (IGST) is ₹77,103 crore (including ₹38,635 crore collected on import of goods) and cess is ₹10,433 crore (including ₹817 crore collected on import of goods), the Union finance ministry said in a statement on Thursday.
“The government has settled ₹33,997 crore to CGST and ₹28,538 crore to SGST from IGST as regular settlement. The total revenue of Centre and the States after regular settlements in the month of November is ₹59678 crore for CGST and ₹61189 crore for e SGST. In addition, Centre had also released ₹17,000 crore as GST compensation to States/uts in November 2022,” it added in the statement.
In November, revenue from import of goods was 20% higher and the revenue from domestic transactions (including import of services) 8% higher than in the corresponding period a year ago, the ministry said.