Goods and services tax (GST) collections rose 16. 6% to £15.17 billion in October, the second highest monthly mop-up since the indirect tax regime was launched in mid-2017. It was only the second time that collections crossed £15 bn with the average monthly collections this year pegged at £14.92 billion. The pace of expansion in October was the slowest in the current fiscal year, according to data issued by the finance ministry, even though tax collections are on track to surpass the yearly objective.
For some time, the administration had set a goal of collecting £15 billion. It is also investigating the causes of an import-related lag. Strong demand and better management, according to experts, were the causes of the growth.
Saurabh Agarwal, tax partner at consulting firm EY India stated that “While the recent holiday season helped the GST collection, increased administration by the federal government and the states has also helped the revenue rise. Healthy collections can be anticipated in the upcoming months as well because both the revenue wings, CBDT and CBIC, are tasked with improving tax collections. Due to numerous Indian government fiscal measures, the self-sustaining economy appears to be moving with a further fall in tax collections on imports.”
