• UGI USER
  • Dec 02, 2023
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GST REVENUE GROWTH IN NOVEMBER

India’s GST revenues surged by 15.1% in November, reaching nearly ₹1.68 lakh crore, marking the fastest growth in the fiscal year 2023-24.

This growth surpasses the 10-month high of 13.4% recorded in October, reflecting a positive trend in tax collections.

Source: The Hindu

India’s GDP Growth Overview

  • The latest provisional GDP estimates for the quarter ending September 30 indicate a real economic growth rate of 7.6%.
  • This represents a marginal deceleration from the previous quarter’s growth of 7.8%, as reported by the National Statistical Office.
  • Gross Value Added (GVA) across various sectors of the economy expanded by 7.4%, slightly slower than the 7.8% recorded in the April-June period.
  • The agriculture sector faced challenges, with growth slowing to 1.2%, reaching an 18-quarter low, reflecting the precarious situation in rural areas.
  • Key services sectors, including trade, hotels, transport, communication, and financial services, experienced varying degrees of slowdown.

Factors responsible :

  • Festive Season Impact: The later onset of the festive season in

November contributed to increased consumer spending and business activities, driving higher GST collections.

  • Improved Domestic Transactions: Taxes from domestic transactions showed substantial growth, reflecting increased economic activities within the country.
  • Private final consumption: Private final consumption expenditure, a crucial component of demand, grew at 3.1%.
  • Services Imports Contribution: The rise in taxes from services imports (impressive rise of over 20%, )suggests improved international trade activities, contributing to overall GST revenue.
  • Robust State and Central GST Collections: Both State and Central GST collections demonstrated strength, with Central GST at ₹30,420 crore and State GST at ₹38,226 crore.
  • Integrated IGST Boost: The Integrated IGST of ₹87,009 crore,

including ₹39,198 crore from the import of goods, highlights the positive impact of international trade on revenue.

  • Consistent Revenue Performance: This marks the sixth time in the fiscal year that GST revenues have exceeded ₹1.6 lakh crore, indicating a consistent and resilient revenue performance.
  • Broad-Based Economic Growth:

Manufacturing, mining, utilities, and construction experienced double-digit growth, compensating for the slowdown in other sectors.