NEW DELHI: Robust uptick in domestic transactions, Goods and Services Tax (GST) receipts increased 8.9% to Rs 1,87,346 crore, the second-highest monthly collection. In April, a record-breaking Rs 2.1 lakh crore was collected.
According to the most recent monthly data, domestic collections increased 10.6% to Rs 1,42,251 crore in October based on transactions in September, while import collections increased 3.9% to Rs 45,000 crore. One important measure of the nation’s economic activity is the GST numbers.
The softening of commodity prices, reduced consumption demand in some regions of the world, and logistical difficulties all point to a reduction in trade, according to recent statistics.
Despite good Diwali sales, the figures come amid worries about declining spending demand, particularly in metropolitan regions. “Recent GST receipts suggest that India’s consumer expenditure, which spiked in the previous fiscal year, may be slowing down. A cooling-off period is indicated by the single-digit increase. The short-term trend will be mostly determined by the collections made this month due to the holiday season, especially the performance of the automotive industry. Although the holiday season is anticipated to increase revenue, Saurabh Agarwal, a tax partner at EY, stated that the forecast for the near future is still cautious. Additionally, according to official data, domestic account refunds increased by 42% to nearly Rs 10,500 crore, which led to an 18% increase in total refunds, which were estimated to be Rs 19,306 crore in October. The majority of tax professionals were optimistic about the trend.
According to MS Mani, partner at Deloitte India, “the significant increase in refunds shows the stabilization of the refund process and a decrease in rejections owing to interpretive concerns.”
