GST Collections for November 2023 Hit Rs 1.68 lakh crore; See Highest Growth Rate of 15% YoY

· More than half is in IGST which is pass through tax

· 45% of IGST is from imports and not domestic production

· Punjab and Haryana growth best in India

· NE also shows near doubling

[ABS News Service/02.12.2023]

GST collections: In November 2023, India gathered Rs 1,67,929 crore in gross GST (Goods and Services Tax) revenue. The breakdown includes Rs 30,420 crore in CGST, Rs 38,226 crore in SGST, Rs 87,009 crore in IGST (which covers Rs 39,198 crore from imported goods), and Rs 12,274 crore in cess (with Rs 1,036 crore from imported goods).

The government allocated Rs 37,878 crore to CGST and Rs 31,557 crore to SGST from IGST. Following regular settlements, the Centre and States amassed Rs 68,297 crore and Rs 69,783 crore, respectively, in November 2023.

Comparatively, November 2023's revenues have marked a 15% increase from the same month the previous year. According to the Ministry of Finance, this is the highest YoY growth in monthly GST collections. Domestic transactions (including imported services) surged by 20% compared to revenues from the same sources in November 2022. Notably, this marks the sixth instance in FY 2023-24 where gross GST collections exceeded Rs 1.60 lakh crore.

FY 2023-24's gross GST collection stands at Rs 13,32,440 crore by November 2023, averaging Rs 1.66 lakh crore monthly. This showcases an 11.9% hike over FY 2022-23's gross GST collection, which stood at Rs 11,90,920 crore, averaging Rs 1.49 lakh crore monthly by November 2022.

The chart above shows the monthly gross GST revenue trends for the ongoing year.

The robust GST collections serve as a key economic gauge for the Indian economy's strength. The Goods and Services Tax, an indirect tax reform, was introduced in July 2017.

The GST data cheer comes a day after better than expected India GDP data for the second quarter of financial year 2023-24 was released. The Indian economy grew at a strong 7.6% rate in the July-September quarter of FY24, beating estimates. The resilient GDP growth was largely driven by manufacturing, construction and mining.

Analysts are of the view that even though GDP growth will moderate in the coming quarters, the Indian economy is on a strong footing despite global headwinds. Most agencies have raised their full year GDP growth forecasts for India.