GST Revenue Slips To 12-Month Low, November Collections Signal Cooling Economic Momentum
India’s GST collections fell to a 12-month low of Rs 1.7 lakh crore in November, with growth slowing to just 0.7 percent. Domestic revenue also declined. While the IMF says India’s economy remains strong despite US tariffs, economists warn GST receipts may weaken further as manufacturing and overall demand begin to cool.
India’s GST collections fell to a 12-month low of Rs 1.7 lakh crore in November. |
New Delhi: India’s Goods and Services Tax (GST) collections dropped to a 12-month low in November, touching Rs 1.7 lakh crore, compared with Rs 1.96 lakh crore in October. This marks the slowest growth rate—just 0.7 percent—since the pandemic, according to provisional data.
Officials say the lower numbers match the impact of GST rate cuts introduced on September 22, which were expected to reduce monthly revenue.
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Domestic Revenue Takes a Hit
Net GST collections grew 1.3 percent to Rs 1.52 lakh crore, but domestic revenue was weaker, falling 1.5 percent. This decline suggests that local demand and consumption were softer in November, contributing to the overall slowdown in tax receipts.
The International Monetary Fund (IMF), in its latest staff report, said that India’s economy is still on strong ground this year, even with the pressure of high US tariffs. The IMF believes that recent GST cuts have helped support the economy during this period.
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Economists Warn of Further Softening
Economists, however, warn that GST receipts may remain weak in the coming months as economic activity normalises after a
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