October 2022 Goods and Services Tax Collection Overview

In October 2022, India’s Goods and Services Tax (GST) collections reached a significant ₹1,51,718 crore, marking the second highest monthly collection since the tax system’s introduction. This figure was only surpassed by the ₹1,67,540 crore recorded in April 2022. It is notable that this month represents only the second instance of collections exceeding the ₹1.5 lakh crore threshold, despite consistent collections above ₹1.4 lakh crore for eight consecutive months. For reference, the GST Collection for September 2022 was reported at ₹1,47,686 crores.

Breakdown of October 2022 GST Collections

The total GST collection for October comprised several components: Central GST (CGST) accounted for ₹26,039 crore, State GST (SGST) for ₹33,396 crore, and Integrated GST (IGST) for ₹81,778 crore. The IGST figure included ₹37,297 crore collected on imported goods. Additionally, cess collections amounted to ₹10,505 crore, with ₹825 crore originating from imported goods, as per a report from the Press Information Bureau (PIB).

The government facilitated settlements in October by allocating ₹37,626 crore to CGST and ₹32,883 crore to SGST from the IGST collections. Furthermore, an ad hoc settlement of ₹22,000 crore was equally distributed between the central and state governments. Following these ad hoc adjustments, the total revenue stood at ₹74,665 crore for CGST and ₹77,279 crore for SGST.

Analysis of October 2022 GST Collection Trends

The substantial GST collections in October can be attributed to several factors. These include revenue generated from quarter-end filings, which coincided with the close of the second financial quarter. Another major contributor was the nationwide increase in consumer spending during the festive season, as individuals made purchases for households, gifts, travel, and investments. Similar collection levels are anticipated for the month of November.

Efforts by the government to combat tax evasion have also played a role. Recently, new regulations were introduced to restrict input tax claims, aimed at preventing the use of fraudulent input tax credits. These restrictions place the responsibility on recipient businesses to engage solely with compliant vendors who accurately file their GST returns and settle their dues promptly; failure to do so results in the forfeiture of input tax credit. Such measures are likely contributing to the consistent GST revenues observed over recent months, a trend expected to persist.

State-wise GST Collection for October 2022

Among all regions, Ladakh recorded the highest year-on-year growth in GST collection for October, showing a 74% increase compared to October 2021. Maharashtra led in absolute collection value, reaching ₹23,037 crore, followed by Karnataka, Tamil Nadu, and Gujarat.

Conversely, several states and union territories, including Jammu and Kashmir, Bihar, Manipur, Mizoram, Assam, Chhattisgarh, Andaman and Nicobar, and the Centre Jurisdiction, experienced negative year-on-year growth in October.

The Ministry of Finance publicly announced the October 2022 GST collection figures through a press release on the Press Information Bureau (PIB) on November 1st, 2022.