India’s GST Collections Reach New Heights in October 2024
In October 2024, India’s Goods and Services Tax (GST) collections reached Rs 1.87 lakh crore, marking an 8.9% increase from the previous year. This growth reflects a positive trend in the country’s economy, driven by strong domestic consumption and import activity.
Yearly Growth in GST Collections
Compared to October 2023, when the GST collection was Rs 1.72 lakh crore, there has been a significant rise. The cumulative GST collection for 2024 so far stands at Rs 12.74 lakh crore, a 9.4% increase from Rs 11.64 lakh crore in the same period of 2023.
Record Highs and Fiscal Year Overview
April 2024 saw a record GST collection of Rs 2.10 lakh crore. For the financial year 2023-24, the total gross GST collection was Rs 20.18 lakh crore, an 11.7% increase from the previous year. The average monthly collection for this fiscal year was Rs 1.68 lakh crore, surpassing the previous year’s average of Rs 1.5 lakh crore.
Impact on Economy
The increase in GST collections indicates a robust economic recovery for India, showcasing resilience amidst global uncertainties. The GST, introduced on July 1, 2017, has seen various rate adjustments on essential items like hair oil, toothpaste, and mobile phones, benefiting the public.
Role of the GST Council
The GST Council, led by the Union Finance Minister and including Finance Ministers from all states, has been instrumental in these developments.
Doubts Revealed
GST -: GST stands for Goods and Services Tax. It is a tax that people pay when they buy goods and services in India. It helps the government collect money to spend on things like roads, schools, and hospitals.
Lakh crore -: A lakh is a unit in the Indian numbering system equal to 100,000. A crore is equal to 10 million. So, a lakh crore is a very large number, specifically 1 trillion.
Fiscal year -: A fiscal year is a 12-month period used by governments and businesses for accounting purposes. In India, it starts on April 1st and ends on March 31st of the next year.
GST Council -: The GST Council is a group of people in India who decide how GST should work. It includes representatives from the central and state governments, and they make important decisions about GST rates and rules.