GST Collections Surge To Rs 1.87 Tn In October, Driven By Festival Demand

New Delhi, Nov 2 (KNN) India's Goods and Services Tax (GST) collections reached Rs 1.87 trillion in October 2024, marking the second-highest revenue since the tax regime's implementation in 2017. 

The figure represents an 8.9 per cent year-on-year increase compared to October 2023, surpassing September's collection of Rs 1.73 trillion, which had shown a 6.5 per cent annual growth.

The robust collection, representing September transactions, reflects strong consumer spending during the festival season. 

This performance falls short only of the all-time high of Rs 2.1 trillion recorded in April 2023, underscoring the economy's continued momentum in the consumption sector.

Policy makers have anticipated this festival-driven surge in GST revenues and maintain optimism about improvements in rural consumption patterns. 

However, they remain vigilant about a perceived moderation in urban demand. 

The finance ministry's monthly economic review has highlighted the positive trajectory of rural demand while cautioning about potential risks from external factors, particularly geopolitical conflicts, which could impact household wealth and spending patterns on durable goods.

(KNN Bureau)