The Goods and Services Tax collection for the month of October rose to Rs 1,30,127 crore from 1,17,010 crore in September, government data showed on Monday.
The monthly collection in October was the second-highest ever since the new tax regime was implemented in June 2017. The highest collection of over Rs 1.41 lakh crore was recorded in April.
October was also the fourth consecutive month when GST collections crossed the Rs 1 lakh crore-mark.
“This is very much in line with the trend in economic recovery,” the finance ministry said in a release.
Of the total collection in October, Rs 23,861 crore came from Central GST and Rs 30,421 crore as State GST. Integrated GST collections amounted to Rs 67,361 crore (including Rs 32,998 crore crore collected on import of goods) and the cess was Rs 8,484 crore, the finance ministry said.
Aditi Nayar, chief economist at rating agency ICRA told Moneycontrol that the pickup in GST collections indicated pre-festive season stocking among consumers, as well as better compliance from taxpayers.
Nayar added that the monthly collection in November could also be in the range of Rs 1.25 lakh to Rs 1.35 lakh.
MS Mani, senior director at financial advisory firm Deloitte India said that if GST collections continued to remain robust, it was likely to exceed the government’s budgetary target. “This would provide some fiscal space to absorb the increased healthcare costs etc,” he said.