October GST Collection Surpasses ₹1.87 Lakh Crore Due to Festive Season Surge - Read Now

India had a busy October, as it is usually the time of Navratri through Diwali, but this year was no exception. It has been a season where consumer spending has gone through the roof, and government revenues have benefited from the same. GST collection was more than ₹1.87 lakh crore.

The government reported data showed that the GST collection for October 2024 had risen to 9% over the previous year's ₹1.72 lakh crore. Accounting for refunds, the net GST collection had stood at ₹1.68 lakh crore, which marked an 8% increase over the figures for October 2023.

The government is trying to increase tax revenues to the maximum. In this regard, the GST framework is likely to undergo changes. The GST Council recently called two ministerial groups to discuss possible reforms in this regard, such as abolishing GST on health insurance premiums for senior citizens. This will be a much-needed relief for senior citizens, who bear a lot of healthcare costs.

The ministerial group report further recommends some GST rate cuts for a few essential commodities. It is of the opinion that water bottles of 20-liter capacity, bicycles and practice notebooks should be brought down to 5% from the current rates. The current GST for such capacity of water bottles stands at 18%, and a bicycle less than ₹10,000 attracts a 12% tax.

But some items will gain from a tax hike. GST on watches over ₹25,000 and footwear more than ₹15,000 will go up to 28% from 18%, according to reports. Since long, it has become one of the government strategies balancing its revenues in the field of taxes while bringing crucial commodities within the affordability curve.

As the festive season continues to boost economic activity, the government's proactive approach to managing GST collections and potential reforms will be very important in sustaining revenue growth.

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