(MENAFN- AsiaNet News)

GST Collections Show Strong Growth in October

The Goods and Services Tax (GST) collections in October, in gross terms, rose 4.6 per cent to about 1.95 lakh crore compared to about 1.87 lakh crore in the same month last year, according to official data released Saturday. In the month of October, collections of Central-GST, State-GST, and Integrated-GST rose year-on-year, while cess collections dipped year-on-year, data showed.

So far in 2025-26 - April-October, the GST collections rose 9.0 per cent to about Rs 13.89 lakh crore, as against Rs 12.74 lakh crore in the same period last fiscal. In this case also, all components - CGST, SGST, IGST, rose, while cess declined.

Record Annual Collections Highlight Positive Trend

India's Goods and Services Tax (GST) system has achieved a major milestone in 2024-25, with a record gross collection of Rs 22.08 lakh crore, showing a 9.4 per cent growth over the previous year. The average monthly GST collection stood at Rs 1.84 lakh crore, the highest since GST was launched in 2017. GST collections have steadily increased over the years, rising from Rs 11.37 lakh crore in 2020-21 to Rs 20.18 lakh crore in 2023-24, reflecting stronger economic activity and better compliance.

GST Council Spearheads Major Tax Reforms

The GST Council, which was formed under the Constitution to guide GST policy, has played a key role in shaping the system. It is chaired by the Union Finance Minister and includes state finance ministers and other key officials. Since its formation in 2016, the Council has held 55 meetings, taking many important decisions to make the GST system simpler and more business-friendly.

New Two-Rate Structure Aims for Simplification

On September 3, sweeping changes were made under the next-generation GST (Goods and Services Tax) rationalisation, just days after Prime Minister Narendra Modi announced it from the ramparts of the Red Fort on Independence Day. In a historic move to simplify the Goods and Services Tax(GST), GST Council in its 56th meeting had reduced the GST structure from four slabs (5%, 12%, 18%, 28%) to two main rates--5% (merit rate) and 18% (standard rate) along with a 40% special rate for sin/luxury goods. This was aimed at reducing the tax burden on citizens while stimulating economic growth.

On September 22, the first day of Navratri, all changes to GST rates took effect. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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