October GST collection tops ₹1L cr

For the first time since February, GST collections topped ₹1 lakh crore in October, indicating that economic activity is headed to pre-Covid-19 levels.

The mop-up last month was 10.2% higher at ₹1,05,155 crore, making it the fastest rise since the 15.6% growth recorded in March 2019.

Collections in October are for September sales.

In October 2019, collections had dropped by over 5% to ₹95,380 crore. This time, domestic sales resulted in an 11% rise in collections, while those due to imports were estimated at 9%.

Last year, festival sales were bunched up in October due to Dussehra and Diwali.

This time, Dussehra sales took place in October, and the numbers will be clearer next month. Diwali sales are expected to be captured in the December numbers. The government sees the numbers as a pointer towards growth slowly coming back and strong signs of recovery in the months ahead.

However, some of the service sectors are still witnessing muted demand.

Finance minister Nirmala Sitharaman had said that there could be a strong bounce back next year after near zero growth during the current financial year.

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