NEW DELHI: Signalling India’s gradual economic recovery, Goods and Services Tax (GST) collections grew 25% year-on-year to Rs 1,31,526 crore in November, surpassing October’s Rs 1.30 lakh crore mop-up.
Tax collections from import of goods also contributed to the numbers, which were 43% higher, while revenues from domestic transactions, including import of services, were 20% higher compared to November 2020, government data showed.
According to the government, rising demand and better compliance by taxpayers contributed to the growth in GST collection. Officials claimed the numbers will be even better in the coming months. November’s GST mop-up is the second largest on record. The highest was in April this year, at Rs 1.40 lakh crore.
Experts say GST collection will maintain healthy momentum for the rest of the fiscal. “We expect Central GST collections to rise to Rs 5.8 lakh crore in FY22, exceeding the BE by Rs 50,000 crore,” said Aditi Nayar, chief economist at ICRA.
Another data set released on Wednesday, IHS Markit Purchasing Managers’ Index (PMI), bolstered the argument that economic recovery is gathering pace. The PMI survey showed manufacturing zoomed to a 10-month high in November on high domestic demand.