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.
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.
Economists Warn of Further Softening
Economists, however, warn that GST receipts may remain weak in the coming months as economic activity normalises after a
