GST Revenue Collection Declined 5.29 percent in October, 2019

The Goods and Services Tax (GST) revenue declined 5.29 percent YoY in October compared to 2.67 percent decline in September 2019, reflects timid demand in the Indian economy. Out of the gross collections of INR 95,380 crore, CGST was INR 17,582 crores, SGST was INR 23,674 crores and IGST was 46,517 crores in October 2019.This was the third consecutive month where GST collection remained below INR 1 Lakh crore, despite festive season in October.

The depressed GST revenue collection would likely put pressure on government of India (GOI) finances that is already showing sluggish growth. In the first half of the FY20 (March-September), the GOI has collected 36.8 percent tax revenue of the full year target. Moreover, reduction in corporate tax rate has added fiscal pressure on the GOI as well.