India’s gross GST collection increased 4.6 per cent to about Rs 1.96 lakh crore in October, driven by a festive buying spree despite a cut in GST rates.

Goods and Services Tax (GST) rates on 375 items, including kitchen staples, electronics, and automobiles, were slashed by the government, effective from September 22 —the first day of Navratri and considered auspicious for buying new goods.

Festive buying boosts collection

The October GST collection number reflects the impact of festive season sales and the pent-up demand. Consumers had held back their purchase decisions, awaiting a GST rate cut after Prime Minister Narendra Modi announced in his Independence Day speech that GST rates would be cut ahead of Diwali. The rate cut was, however, implemented with the onset of Navratri.

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