GST collection in October jump hints at economic recovery

People shop at a crowded market ahead of Diwali, the Hindu festival of lights, in the old quarters of Delhi, India, October 11, 2022. REUTERS/Anushree Fadnavis/File Photo

NEW DELHI, Nov 1 (Reuters) – The Indian government said it collected more than 1.50 trillion rupees ($18.14 billion) through indirect taxes in October, buoyed by festival-related spending and hinting at a steady recovery in Asia’s third-largest economy.

The goods and services tax (GST) collection was 1.52 trillion rupees in October, the second-highest monthly collection since GST was introduced in 2018.

GST collection was 1.48 trillion rupees in September, while it was 1.30 trillion rupees in October 2021.

India’s overall tax collection in the current fiscal year has been a positive surprise, coming as it has while high inflation threatened to hurt demand and consumer activity.

According to government sources, India is likely to better its budget tax collection target by more than 1.5 trillion rupees, which will partly help offset high expenditure on account of inflation fighting measures.

Last month, Reuters reported Indian consumers were lapping up everything from cars, houses and television sets to travel and jewellery in the festive season. ($1 = 82.7070 Indian rupees)

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Source: Reuters