India's gross Goods and Services Tax (GST) collections rose 4.6 per cent year-on-year to about Rs 1.96 lakh crore in October, according to official government data released on Saturday, October 31 — holding up despite the rate rationalisation that took effect in September.

Source: IANS via Investment Guru India

October was the tenth consecutive month in which GST revenues stayed above the Rs 1.8 lakh crore mark. After refunds, the government's net GST collections stood at Rs 1.69 lakh crore, 0.6 per cent higher than in October last year.

The break-up of the October gross collection was: Central GST (CGST) Rs 36,264 crore, State GST (SGST) Rs 45,264 crore, Integrated GST (IGST) Rs 1,00,770 crore — including Rs 36,626 crore collected on imports — and cess of Rs 13,079 crore, including Rs 856 crore on imported goods.

Source: Free Press Journal via Glance

Cumulatively, GST collections for the April-October period rose 9 per cent to about Rs 13.89 lakh crore, against Rs 12.74 lakh crore in the same period a year earlier. September's collections had risen 9.1 per cent year-on-year to Rs 1.89 lakh crore.

October was the first full month of collections after the September 22 GST rate cuts. The government said the benefits of the cuts were passed on to consumers during the festive season, and that consumption — a key engine of growth — is expected to rise by more than 10 per cent this year.

Tax experts said the modest net growth reflected festive demand offsetting the revenue effect of lower rates. Abhishek Jain, Partner and National Head of Indirect Tax at KPMG in India, was among the analysts cited in the wire report on the data.

Source: IANS via Investment Guru India

November's data, due at the end of next month, will be watched for whether higher volumes continue to offset the lower rates after the festive season ends.