How Did GST Collections Rise Again in November to Rs 1.70 Lakh Crore Despite Rate Rationalisation?
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Synopsis
India's GST collections for November reached an impressive Rs 1.70 lakh crore, reflecting a year-on-year increase. This growth, driven by policy reforms and lower rates, highlights the resilience of the Indian economy amidst global challenges.
Key Takeaways
- GST collections reached Rs 1.70 lakh crore in November.
- 0.7% year-on-year growth.
- Import-related IGST increased by 10.2%.
- Net GST revenue for April-November rose by 7.3%.
- India's GDP growth hit 8.2% in the last quarter.
New Delhi, Dec 1 (NationPress) India's Gross Goods and Services Tax (GST) collections for November surged to Rs 1,70,276 crore, marking a 0.7% year-on-year increase, propelled by reduced tax rates and comprehensive policy reforms, according to official statistics released on Monday.
The total net GST revenue climbed by 1.3% to Rs 1.52 lakh crore in the previous month.
Import-related IGST saw a substantial rise of 10.2% to Rs 45,976 crore, contributing to a total gross GST revenue of Rs 1,70,276 crore, which is a 0.7% increase compared to November of the previous year.
Moreover, net collections from exports and imports experienced an impressive growth of 11.6%, reaching Rs 36,521 crore.
During the April-November timeframe of this fiscal year, total net GST revenue escalated by 7.3% to Rs 12.79 lakh crore.
Earlier, despite the rationalization of rates, GST collections had risen by 4.6% year-on-year in October, amounting to approximately Rs 1.96 lakh crore. This also marked the 10th consecutive month of revenues exceeding the Rs 1.8 lakh crore threshold.
According to official reports, GST collections increased by 9% to around Rs 13.89 lakh crore from April to October this fiscal, compared to Rs 12.74 lakh crore in the same period last fiscal year (FY25).
The month of October witnessed strong consumer demand following the rate reductions implemented on September 22 as part of broader tax and economic reforms.
The government indicated that the benefits of recent GST reductions have been passed on to consumers during the festive season, with consumption playing a vital role in driving growth.
In addition, India has solidified its status as the world's fastest-growing large economy, with GDP growth reaching 8.2% in the July-September quarter, even as the global economy grapples with uncertainty and a slowdown.
This remarkable growth is not a fleeting occurrence; the 8.2% increase follows a robust 7.8% growth in the first quarter, averaging 8% GDP growth for the first half of the fiscal year 2025-26.
Point of View
This consistent growth in GST collections signifies the effectiveness of recent reforms and the positive impact on consumer behavior. It is crucial for the government to maintain this momentum to ensure sustained economic growth.
NationPress
01/12/2025
Frequently Asked Questions
What drove the increase in GST collections in November?
The increase in GST collections was primarily driven by lower tax rates and comprehensive policy reforms implemented by the government.
How do the November GST collections compare to previous months?
In November, GST collections reached Rs 1.70 lakh crore, a 0.7% increase from the previous year, while October's collections were around Rs 1.96 lakh crore.
What is the significance of import-related IGST growth?
The 10.2% growth in import-related IGST indicates increased import activity, contributing to the overall rise in gross GST revenue.
How does this growth affect the Indian economy?
The consistent increase in GST collections underlines economic resilience and suggests positive consumer sentiment, which is vital for overall growth.
What was the GDP growth rate for India in the recent quarter?
India’s GDP growth rate surged to 8.2% in the July-September quarter, showcasing its position as the fastest-growing large economy.
