NEW DELHI: Kerala reported its highest-ever monthly GST growth rate in October 2024, with collections jumping 20 per cent year-on-year.
This increase, from Rs2,418 crore in October 2023 to Rs2,896 crore in 2024, also marked the highest growth October among major Indian states. This record surge underscores the state’s robust economic activity, bolstered by consumer demand and increased compliance, particularly during the festive season.
Nationally, GST collections rose 8.9 per cent, totaling Rs1.87 lakh crore in October 2024, the second-highest monthly figure since GST’s inception.
This uptick was primarily driven by domestic transactions, which grew by 10.6 per cent, reaching Rs1.42 lakh crore, while collections from imports saw a modest 4 per cent rise, totaling Rs45,096 crore.
This month’s collections reinforce the resilience of India’s economy, with the country recording over Rs12.74 lakh crore in GST revenue for 2024 so far, up by 9.4 per cent from the previous year.
Breakdown
Breaking down the national figures, Central GST (CGST) contributed Rs33,821 crore, State GST (SGST) stood at Rs41,864 crore, Integrated GST (IGST) reached Rs99,111 crore, and the cess amounted to Rs12,550 crore.
After issuing refunds totaling Rs19,306 crore, net GST collections stood at over Rs1.68 lakh crore, reflecting an 8 per cent increase after adjustments. Analysts attribute this buoyancy to a combination of festive season sales and higher compliance levels, especially in the domestic segment.
Kerala’s growth well above national average
Industry leaders noted that Kerala’s high growth rate was well above the national average, which remains a positive indicator of the state’s economic vibrancy. Analysts noted that the festive season’s role, along with improved tax adherence, as key drivers.
However, the single-digit national growth rate might signal a slowdown, with October potentially marking a peak in consumer spending, according to tax expert.
The upcoming November GST Council meeting could address further rate rationalisation on over 100 items to streamline revenue. The meeting will be chaired by Union Finance Minister Nirmala Sitharaman and is expected to address these and other tax policy measures, which could impact the trajectory of GST collections in the coming months.
